In a statement issued earlier this week by the Federal Communications Commission Chairman Ajit Pai, Chinese telecommunications companies Huawei and ZTE have both been designated as threats to national security, the Verge is reporting.
While Canada is yet to decide whether or not to ban Huawei 5G hardware, the FCC has already barred all telecommunications providers from using government subsidy money through the $8.3 billion Universal Service Fund to purchase equipment from Huawei for their networks.
Experts believe that the FCC’s move to block telecoms from using federal to purchase equipment from Huawei and ZTE could make it more difficult for smaller companies to provide affordable services.
“With today’s Orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America’s communications networks — and to our 5G future,” FCC Chairman Ajit Pai said in a statement Tuesday. “Both companies have close ties to the Chinese Communist Party and China’s military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country’s intelligence services.”
China has been pressuring Canada to use 5G technology from Huawei, although the country’s Innovation Minister Navdeep Bains has made it clear that Canada is an independent country and will make decisions on its own terms.