Following President Biden signing the “Secure Equipment Act of 2021” last year, the Federal Communications Commission (FCC) is now expected to ban sales of new equipment in the US from Huawei and ZTE due to national security concerns.
As Axios reports(Opens in a new window), a draft order was circulated by FCC Chairwoman Jessica Rosenworcel on Oct. 5 proposing the new equipment ban. The order needs to be voted on before it can take affect, and importantly, it only covers the sale of new equipment. Existing equipment approved by the FCC from both companies could continue to be sold unless the order is updated to be retroactive.
The order is also expected to target video surveillance equipment used for public safety, with a ban likely to impact Chinese companies including Hytera Communications Corporation, Hikvision, and Dahua Technology Company.
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Back in July, the FCC told the US Senate Committee on Commerce, Science, and Transportation that $1.9 billion wasn’t enough to reimburse carriers for removing Huawei and ZTE equipment. The required amount is closer to $5 billion. Even so, it looks as though Huawei and ZTE are on borrowed time in the US market. That could result in some desperate measures, for example, Huawei attemping to sidestep US sanctions using a startup.
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