FCC Blocks Huawei and ZTE From Billions in US Telecom Funds
The FCC unanimously votes to label Huawei and ZTE as national security risks, preventing rural carriers from using government funds to buy their equipment. The agency also proposes a mandate to strip existing Chinese hardware from US networks.
The U.S. Federal Communications Commission (FCC) votes 5-0 to designate Chinese tech giants Huawei and ZTE as national security risks. This historic decision officially bars U.S. rural carriers from using an $8.5 billion government subsidy fund to purchase any equipment or services from these companies.
Beyond cutting off future funding, the FCC also proposes a new requirement that forces affected carriers to remove and replace existing Huawei and ZTE hardware from their current networks. Both companies have 30 days to contest the designation, but a final order mandating the removal of this equipment is not expected until next year at the earliest.
Huawei strongly criticizes the ruling, calling the order unlawful and accusing the FCC of relying on irrational speculation. This latest regulatory move represents a major escalation in the ongoing Trump administration campaign to isolate Chinese telecommunications firms from American markets and infrastructure.