US Bans Import of Equipment from Huawei and ZTE Telecom, Cites Data-Security Risk

Regulators see potential security risks from the imported equipment that may lead to a data breach.

An order was released by the Federal Communications Commission that bans Huawei Technologies Co. and ZTE Corp. because of data-security concerns. Aside from this reason, this is an effort from the regulators of the United States to limit the reach of telecommunications companies from China into the networks of the country.

Inside Huawei, China's Tech Giant
DONGGUAN, CHINA - APRIL 11: Workers are seen on the production line at Huawei's production campus on April 11, 2019 in Dongguan, near Shenzhen, China. Huawei is Chinas most valuable technology brand, and sells more telecommunications equipment than any other company in the world, with annual revenue topping $100 billion U.S. Headquartered in the southern city of Shenzhen, considered Chinas Silicon Valley, Huawei has more than 180,000 employees worldwide, with nearly half of them engaged in research and development. In 2018, the company overtook Apple Inc. as the second largest manufacturer of smartphones in the world behind Samsung Electronics, a milestone that has made Huawei a source of national pride in China. While commercially successful and a dominant player in 5G, or fifth-generation networking technology, Huawei has faced political headwinds and allegations that its equipment includes so-called backdoors that the U.S. government perceives as a national security. U.S. authorities are also seeking the extradition of Huaweis Chief Financial Officer, Meng Wanzhou, to stand trial in the U.S. on fraud charges. Meng is currently under house arrest in Canada, though Huawei maintains the U.S. case against her is purely political. Despite the U.S. campaign against the company, Huawei is determined to lead the global charge toward adopting 5G wireless networks. It has hired experts from foreign rivals, and invested heavily in R&D to patent key technologies to boost Chinese influence. Kevin Frayer/Getty Images
(Photo : Kevin Frayer/Getty Images)
DONGGUAN, CHINA - APRIL 11: Workers are seen on the production line at Huawei's production campus on April 11, 2019 in Dongguan, near Shenzhen, China. Huawei is Chinas most valuable technology brand, and sells more telecommunications equipment than any other company in the world, with annual revenue topping $100 billion U.S. Headquartered in the southern city of Shenzhen, considered Chinas Silicon Valley, Huawei has more than 180,000 employees worldwide, with nearly half of them engaged in research and development.

Banning Huawei and ZTE

Huawei Technologies and ZTE Corp are now banned from importing equipment in the United States, as the Federal Communication Commission issues an order on Friday. Regulators see potential security risks from the imported equipment that may lead to a data breach.

They also named other companies that are included in the list, which are connected-camera providers Hangzhou Hikvision Digital Technology Co. and Dahua Technology Co., and two-way radio maker Hytera Communications Corp.

According to a report from CBS News, a unanimous decision (4-0) was voted by the five members of the FCC and said that it will be adopting new rules to block the importation of communications equipment, or even the sale of technology, that poses a security threat to the country.

Chairwoman Jessica Rosenworcel stated that FCC is always committed to the protection of the country's national security.

She added, "These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications." The unanimous decision was a first in the history of the FCC to prohibit the authorization of new equipment for security concerns, which makes FCC Commissioner Brendan Carr delighted.

The Current Administration's Stance

Concerns from the government started under Donald Trump's presidency and it is now being carried out in the Biden administration, which is according to Bloomberg, very reasonable as companies are not changing or improving their security when it comes to a threat.

This matter was not talked about during the bilateral meeting between US President Joe Biden and Chinese President Xi Jinping. However, Biden made it clear that the regulators will be continuing to take action to protect the country's national security under his belt.

Banning TikTok

Last week, two senators issued a bipartisan warning to TikTok as they warn audiences from the United States of potential risks when using the application.

Arkansas Republican Senator Tom Cotton stated that he sees the application as one of the most massive surveillance programs ever.

He added, "It's not just the content you upload to TikTok but all the data on your phone, other apps, all your personal information, even facial imagery, even where your eyes are looking on your phone."

While Virginia Democrat Senator Mark Warner, the Senate Intelligence Committee Chair, described the application as an enormous threat.

Two Republican lawmakers were also planning to introduce legislation to ban the whole operations of TikTok in the country.

While these actions were made, Senator Marco Rubio of Florida and Wisconsin Representative Mike Gallagher criticized the current administration for not taking action regarding the risks of the application.

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Written by Inno Flores

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