HuaweiÂ andÂ ZTE case with the United States definitely far from over, in fact gone worse. The two Chinese tech giants have faced sanctions in recent years from the North American country. These sanctions have greatly affected their businesses and cost them millions of dollars. Sadly, their troubles with the country seems to have just started.
The United Statesâ€™ Federal Communications Commission, had yesterday, officially declared that HuaweiÂ and ZTE are a threat to the country’s national security in a formal press release. According to Commissioner Brendan Carr, both companies are linked to â€œCommunist Chinaâ€ and intend to engage in large scale industrial espionage.
With todayâ€™s orders, and based on the overwhelming weight of evidence, the bureau has designated Huawei and ZTE as national security risks to Americaâ€™s communications networks â€“ and to our 5G future.
â€“ Ajit Pai, Chairman FCC.
The official statement released by the agency said;
â€œboth companies have close ties to the Chinese Communist Party and Chinaâ€™s military apparatus. They are also both subject to a Chinese law that obligates them to cooperate with the countryâ€™s intelligence servicesâ€.
Huawei has always maintained it’s innocence, insisting it will never hand over customersâ€™ data to the government.
The ruling is said to also affect their affiliates and subsidiaries. It was also stated that the new development makes it impossible for American businesses to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by Huawei and ZTE using money from the FCCâ€™s $8.3 billion Universal Service Fund.