he Federal Communications Commission’s (FCC) Public Safety and Homeland Security Bureau on March 12 identified five Chinese companies they said posed a threat to U.S. national security. These companies are: Huawei Technologies Co., ZTE Corp., Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co. and Dahua Technology Co.

The declaration, according to the FCC, is in accordance with the requirements of the Secure and Trusted Communications Networks Act of 2019, which requires the FCC to “publish and maintain a list of communications equipment and services that pose an unacceptable risk to national security or the security and safety of U.S. persons.”

In June 2020, the FCC designated both ZTE and Huawei as national security threats. “… [B]ased on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America’s communications networks—and to our 5G future,” said then-FCC chairman Ajit Pai. Pai continued, “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.  The Bureau also took into account the findings and actions of congress, the executive branch, the intelligence community, our allies, and communications service providers in other countries. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure. Today’s action will also protect the FCC’s Universal Service Fund—money that comes from fees paid by American consumers and businesses on their phone bills—from being used to underwrite these suppliers, which threaten our national security.”

ZTE’s petition for reconsideration in November 2020 was immediately rejected. Huawai also petitioned for reconsideration, and their appeal was rejected in December 2020, after a few weeks of deliberation.

FCC Boots Chinese Telecom Companies, Citing Security