Just when we thought that the drama between the United States and some Chinese companies was going to another plane, they come and write a new chapter. It was not enough for the US government to veto Huawei, a measure that hit the company very hard, now it is going for more. What’s the latest? That the US has now banned imports from ZTE, Huawei and a couple of other companies as a potential threat.
For the FCC, Huawei and ZTE are a potential danger to national security
The Federal Communications Commission (FCC) of the United States this Friday added another layer to the conflict with Huawei, ZTE and other Chinese companies. The agency maintains that ZTE and Huawei products are a potential threat to the security of the United States and made a move in this regard.
Specifically, the FCC has banned the import and sale of communications devices made by Huawei Technologies and ZTE Corporation. It also added two additional companies to the list: Dahua Technology and Hangzhou Hikvision, both specializing in surveillance equipment.
The new US ban primarily targets Huawei and ZTE modems, routers, antennas and other network equipment. This is the main business of both companies, so the blow will be very hard. However, it also affects its sections for mobile phones, tablets and consumer computers , as they also serve to communicate.
Regarding this decision, FCC Chairman (Jessi Rosenworcel) said the following: “The FCC is dedicated to preserving our national security by ensuring that unreliable communications equipment is not allowed to be used within our borders. The new regulations They are part of ongoing efforts to protect us against security threats .”
In addition, he warned that the FCC could take some actions on the authorizations that are currently in force . In other words: they could drive Huawei and ZTE out of the market completely, including the equipment that is already in the country (for sale, in transit and in use).
A horror story for Huawei and ZTE that began in 2018 and is still valid
In 2018, during the Donald Trump administration, the United States government accused Huawei of espionage, an accusation that was made without evidence. Since then, many American companies have terminated agreements with the Chinese telecommunications giant, such as Google, which prohibited them from using Google Play Services. These accusations also affected ZTE, Honor, TikTok and even Xiaomi itself, although the latter reached some agreements to avoid the veto.
The consequences of these accusations have been such that they have negatively affected the reputation of Huawei and ZTE around the world. Its sales were reduced to a small fraction of what they were and Huawei ceased to be one of the manufacturers that sold the most mobile phones on the entire planet.
At the end of 2019, it was said that the commercial veto could be lifted. The same thing when the Joe Biden government began, but it was not like that and the problem has remained in flux until today . With this latest order from the FCC, the conflict escalates even more and we don’t know what will happen to these Chinese companies globally. The worst of all? None of this comes from the mobile market, but from the expansion of 5G networks, where China had a huge technological advantage.
