FCC affirms ZTE poses U.S. national security threat (updated)
24/11/2020 22:32
(Adds Huawei petition pending, no immediate ZTE comment, FCC
action last week)
By David Shepardson
WASHINGTON, Nov 24 (Reuters) - The Federal Communications
Commission (FCC) said on Tuesday it had rejected a petition from
ZTE Corp 000063.SZ asking the agency to reconsider its
decision designating the Chinese company as a U.S. national
security threat to communications networks.
The FCC announced in June it had formally designated
Chinese's Huawei Technologies Co and ZTE as threats, a
declaration that bars U.S. firms from tapping an $8.3 billion
government fund to purchase equipment from the companies.
ZTE did not immediately respond to a request for comment.
Last week, the FCC said it was extending time frame to
respond to Huawei's petition until Dec. 11 "to fully and
adequately consider the voluminous record."
In May 2019, President Donald Trump signed an executive
order barring U.S. companies from using telecommunications
equipment made by companies posing national security risks and
the administration added Huawei to its trade blacklist.
The FCC on Dec. 10 will vote on rules to help carriers
remove and replace equipment from companies posing security
risks from networks.
FCC Chairman Ajit Pai said last week the commission will
take up two unspecified national security matters at its Dec. 10
meeting.
In April, the FCC disclosed it might shut down the U.S.
operations of three state-controlled Chinese telecommunications
companies: China Telecom 0728.HK , China Unicom 0762.HK and
Pacific Networks Corp and its subsidiary ComNet (USA).
The nearly 20-year-old authorizations allow Chinese telecom
companies to provide interconnection services for phone calls
between the United States and other countries.
Last week, the FCC said it was reclaiming International
Signaling Point Codes assigned to China Telecom (Americas),
saying it had determined "the three codes are no longer in use."
China Telecom did not immediately comment.
Last month, the FCC asked the Justice Department to weigh in
on whether China Unicom’s U.S operations pose security risks.
In May 2019, the FCC voted unanimously to deny another
state-owned Chinese telecommunications company, China Mobile
0941.HK , the right to provide U.S. services, citing concerns
China could use the approval to conduct espionage against the
U.S. government.
(Reporting by David Shepardson in Washington
Editing by Chris Reese and Matthew Lewis)
((David.Shepardson@thomsonreuters.com; 2028988324;))