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The Secure Communications Act closes the FCC hole for Huawei, ZTE


Image for article titled Biden signs law to close 'Huawei hole'

Photography: Tobias Schwarz (Getty Images)

President Joe Biden this week signed a law pulling one of the last cable cars of Huawei and ZTE into the United States.S. markets just days before the summit with the Chinese president, Xi Jinping.

Called the Safe Equipment Act, the law rarely received unanimous Senate approval and was overwhelmingly approved by 420-4 votes in the House, a stark reminder that the bipartisan is dead… except when it comes to China. The news rules will effectively prohibit the Federal Communications Commission from considering licensing companies from the United States.S. considers threats to national security, an increasing number of which are based in China.

By passing the law, lawmakers hope to close what some have called Huawei Loophole”Which allows companies such as Huawei and ZTE to apply for licenses as long as those applications do not include federal funds. That technique is part of the reason why the Federal Communications Commission was can approve more than 3,000 Huawei applications as of 2018, FCC Comission Brendan Carr said Reuters. These applications are part of the reasons why it is an agency wear $ 1.9 billion in compensation to small ISPs to remove and replace Huawei and ZTE equipment. The FCC did not immediately respond to Gizmod’s request for comment.

During the transition period between the presidencies of Donald Trump and Joe Biden, there was some uncertainty about whether the new administration would maintain its predecessor’s hawkish attitude toward Chinese companies. At least in the case of Huawei and ZTE, this the news is the clearest proof of the sequel.

Earlier this year, the FCC formally he called five Chinese companies – Huawei, ZTE, Hytera, Hikvision and Dahua Technology – threats to the U.S. national security. Then in July, Biden added Another 14 Chinese companies on the economic blacklist of the Ministry of Trade, which prohibits U.S. firms not to do business with them. It all stemmed from then-President Trump’s 2019 move to add Huawei to the blacklist.

The revocation of licenses from the FCC was one of the last real opportunities Huawei had in penetrating U.S. markets, which is now almost impossible. This is important because previous political decisions to block Huaweithe approach has had a dramatic impact on the company’s business.

Company, which was once the world’s number one smartphone maker for shipments for up to a year seconds quarter of 2020, recorded international sales of smartphones nosedive and quarterly revenues tank. Similar restrictions (or in some cases complete bans) for Huaweitelecommunications equipment in the UK, Australia, Canada and elsewhere, they also left Huawei cornered.



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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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