US regulators rule that China's Huawei and ZTE threaten national security
American regulators voted to impose new restrictions on subsidies for American telecom companies Friday. The ruling is designed to constrain Chinese companies, including Huawei and ZTE.
The FCC's decision will prohibit American carriers from using federal subsidies to buy products from any businesses found on a new FCC blacklist. Huawei and ZTE could soon be the first companies on the list after the FCC initially designated both as a threat to national security. The decision could be finalized in a matter of weeks after the vote is officially published in the Federal Register.
The new rules mark Washington's latest escalation against Huawei, whom US policymakers accuse of threatening national security. Huawei denies the claims. But the Trump administration has argued that installing the company's equipment in US networks could allow Chinese spies to eavesdrop on sensitive US communications.
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