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News > U.S.

US: Bill Proposes Barring Federal Funds for China's Huawei, ZTE

  • Last June, the U.S. Federal Communications Commission formally designated ZTE and Huawei as national security threats.

    Last June, the U.S. Federal Communications Commission formally designated ZTE and Huawei as national security threats. | Photo: Twitter/@NyakanaNichola1

Published 28 July 2021
Opinion

According to Senator Tom Cotton's office, bipartisan legislation was introduced in the U.S. Senate Wednesday that would prohibit federal spending for the American Rescue Plan Act to include purchases of Chinese telecommunications equipment, particularly from Huawei and ZTE.

"Senators Tom Cotton and Mark Warner introduced the American Telecommunications Security Act to prohibit federal funding from the American Rescue Plan Act from being used to purchase Chinese telecommunications equipment, including from Huawei and ZTE," the senator's office said in a press release.

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According to the press release, the senators allege the bill is vital to U.S. national security interests.

In June 2020, under the Trump administration, the Federal Communications Commission formally designated ZTE and Huawei as national security threats given their increasing North American marketshare and direct competition to U.S. telecommunications manufcturers.

According to U.S. law, firms based in the United States must obtain government licenses before they can do business with Huawei and ZTE, as well as dozens of other Chinese-based tech firms.

The U.S. Congress similarly approved in December 2020 $1.9 billion to fund the full-fledged replacement of ZTE and Huawei equipment through US telecommunications networks.

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