Five Chinese companies pose a threat to US national security: the FCC

WASHINGTON (Reuters) – The Federal Communications Commission (FCC) on Friday named five Chinese companies as a threat to national security under a 2019 law aimed at protecting US communications networks.

The FCC said the companies include Huawei Technologies Co., ZTE Corp., Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co.

A 2019 law requires the FCC to identify companies that produce telecommunications equipment and services “that have been found to pose an unacceptable risk to U.S. national security.”

FCC Acting President Jessica Rosenworcel said in a statement: “This list provides meaningful guidance that will ensure that as next-generation networks are built across the country, they do not repeat past mistakes and use equipment or services that will pose a threat to US national security or to the security of Americans. ”

The 2019 law used criteria from a defense authorization law that previously identified the five Chinese companies. In August 2020, the US government issued regulations prohibiting agencies from buying goods or services from any of the five Chinese companies.

In 2019, the United States placed Huawei, Hikvision and other companies on its economic blacklist.

Last year, the FCC identified Huawei and ZTE as a threat to national security for communications networks – a statement banning US companies from using a $ 8.3 billion government fund to buy equipment from companies.

In February, Huawei challenged the statement in a petition to the US Circuit Court of Appeals. Huawei declined to comment Friday on the new FCC name.

Hikvision said late Friday that it strongly opposed the FCC’s decision “and weighs all options to best address this unfounded designation.” Hikvision is not on a list for next-generation networks. ”

The other three companies did not comment or could not be reached for comment.

In December, the FCC finalized rules requiring carriers with ZTE or Huawei equipment to “break and replace” that equipment. He created a reimbursement program for the effort, and U.S. lawmakers approved $ 1.9 billion in December to fund the program.