On October 28, 2021, the US Senate unanimously voted on new legislation that categorizes Huawei and ZTE as threats to national security. Thus, companies are prevented from receiving a license to supply equipment to American companies. Find out what's new below.
This Secure Equipment Act was passed by US senators with 420 votes in favor and 4 against, and now goes to President Joe Biden to be signed. The FCC (Federal Communications Commission) will no longer be allowed to review or issue new licenses for blacklisted equipment. In March 2021, the FCC named five companies as threats to national security, citing the 2019 law that protects US communications networks.
Companies include Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. In June, the same authority voted to ban approvals for equipment in China for use by US operators. This is despite the fact that legislation is in place to allow certain projects and collaborations.
The Beijing authorities have responded to these allegations as follows:
"The United States, without any evidence, is abusing national security and state power to suppress Chinese companies."
The FCC also agrees to revoke permits already granted to Chinese companies. The FCC commissioner said the body had approved more than 3,000 Huawei applications since 2018, but they could be canceled because of the new laws. Last week, the FCC revoked China Telecom's authorization to operate in the United States, although it had a branch there.
It seems that the Biden administration is no gentler with Chinese companies than the Trump administration, despite speculation at the end of 2020.