US FCC bars China's Huawei, ZTE from US$8.5 bil subsidies

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Chairman Ajit Pai says both companies 'engage in conduct like intellectual property theft, bribery and corruption'. FMTNews

WASHINGTON: American regulators on Friday unanimously branded Chinese telecoms firms ZTE and Huawei as threats to national security and blocked them from accessing US$8.5 billion in federal funds for services and equipment.

“Both companies are subject to Chinese laws broadly obligating them to cooperate with any request from the country’s intelligence services and to keep those requests secret.”In a statement, Huawei said Washington was needlessly undermining its own interests “based on selective information, innuendo and mistaken assumptions”.

“Rural schools, hospitals and libraries will feel the effects,” Huawei said, adding that the FCC’s decision would result in higher prices. The FCC in May also denied a request by China Mobile to operate in the US market, likewise citing national security risks.

 

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