Arab Press

بالشعب و للشعب
Sunday, Apr 26, 2026

US telecoms regulator designates China’s Huawei, ZTE as national security threats

US telecoms regulator designates China’s Huawei, ZTE as national security threats

US tech firms are banned from using Universal Service Fund to purchase or support any equipment or services provided by these suppliers. The announcement is a step forward in restricting 5G technological equipment made by Chinese companies from entering US telecoms infrastructure

The US telecommunications watchdog on Tuesday designated two Chinese companies – Huawei Technologies and ZTE – as security threats and banned American firms from using a fund to purchase their products.

Federal Communications Commission Chairman Ajit Pai said in a statement: “Based on the overwhelming weight of evidence,” the agency has identified the two companies as well as their parents, affiliates, and subsidiaries “as national security risks to America’s communications networks – and to our 5G future”.

“Both companies have close ties to the Chinese Communist Party and China’s military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country’s intelligence services,” said Pai.

American tech firms will not be authorised to use money from the FCC’s annual US$8.3 billion Universal Service Fund to purchase or support any equipment or services provided by these suppliers, effective immediately.

The Universal Service Fund, established in 1997, is a programme of telecoms subsidies for companies to purchase equipment and service to maximise telecoms services access in the country. The programme typically funds between US$5 billion to US$8 billion each year.

Meanwhile, British Prime Minister Boris Johnson toughened his stance on Huawei, telling reporters on that on the company, “the position is very, very simple.”

“I do want to see our critical national infrastructure properly protected from hostile state vendors, so we need to strike that balance and that’s what we’ll do,” said Johnson.

A Huawei representative didn’t immediately respond to an email seeking comment.

Tuesday’s announcement by the FCC is a step forward in restricting 5G technological equipment made by Chinese companies from entering US telecommunications infrastructure.

And Britain’s statement showed a sea change in Huawei’s position in Europe, where a number of governments have been resisting requests by the Trump administration to exclude the Chinese telecoms provider.

Johnson, who in January allowed Huawei a limited role in Britain’s 5G network, has faced intense pressure from its own lawmakers to ban the 5G equipment maker for security reasons.

UK’s Culture Secretary Oliver Dowden told Parliament Tuesday that Huawei will not be part of the UK’s 5G networks in the long term, adding that he welcomes approaches from alternative vendors including South Korea’s Samsung Electronics and Japan’s NEC.

The FCC has proposed that Huawei and ZTE be added to this rule since November. The companies posed a national security threat to the integrity of communications networks or the communications supply chain, the FCC had said then.

In March, US President Donald Trump signed legislation to bar rural telecoms carriers from using US subsidies to purchase network equipment from companies deemed a national security threat, including Huawei and ZTE. Existing products in the system are required to be ripped out and be replaced.

The FCC is establishing a programme to assist small providers with the costs of removing prohibited equipment or services from their networks.

“Once you get through all of that rip and replace, you clear out the underbrush problems of 5G spectrum, you start looking at how can the government compete against the Chinese government who, I would argue, illegally subsidises these contracts around the world,” said Mike Rogers, former House Intelligence Committee chairman.

“Then look at what benefits we can give to research and development for things like Open RAN or other technologies that are closing on the horizon. We need to ramp all of that together and understand that we’re going to be competitive. It’s in our national security interest,” Rogers said on Tuesday at a discussion about 5G hosted by the United States Telecom Association, a trade organisation representing companies such as AT&T and Cisco.

The US telecoms authority has been cracking down on Chinese firms after Congress criticised that the government agencies – Homeland Security, Justice and Defence – which advise the FCC on national security risks lacked consistent oversight in analysing threats by Chinese telecommunications companies.

US government officials have warned that Chinese state-owned carriers are subject to exploitation, influence, and control by the Chinese government and can be used in the Chinese government’s cyber and economic espionage efforts targeted at the United States.

ZTE, a Chinese telecoms giant, was cut off from doing business in the US in 2018 after the government found out the firm sold products to US-sanctioned Iran.

The company later agreed to pay US$1.4 billion in fines and was saved from the brink of collapse after US President Donald Trump directed the Commerce Department to lift the ban as a favour to his Chinese counterpart Xi Jinping.

Huawei – the Chinese telecoms company that is a key player in next-generation 5G technology – has been a top target by the Trump administration. The company was placed on an “entity list” last May, barring it from buying critical components from its American suppliers.

Telecommunications companies, while acknowledging the importance to safeguard national security, cautioned against policies that simply excludes Chinese firms.

“Things like the export control restrictions and other things that the US government’s looking at vis-a-vis China are so significant. But at the end of the day, industry needs to have a broad base of suppliers,” said Chris Boyer, vice-president of global security and technology policy at AT&T on Tuesday. “What we’d like to see is policies that will help advance more competition and more diversity in the supply chain.”

The FCC has recently moved toward revoking the licenses or refused to issue licenses for China Mobile, China Telecom, and China Unicom, commonly referred to as the “Big Three”, to provide telecoms services in the US.

Also on Tuesday, Indian government ministers discussed the 5G rollout plans and whether Huawei should be allowed to participate, according to a report from the The Times of India.




Newsletter

Related Articles

Arab Press
0:00
0:00
Close
News Roundup
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
×