Huawei and ZTE, a Chinese multinational telecommunications equipment and systems company, have been in the American bad books for a while now. Both companies have faced a couple of sanctions over the past few years, adversely affecting their businesses and their goodwill.
Making things worse for them, the United States’ Federal Communications Commission issued an official statement where both conglomerates were classified as national security threats to communications networks. Moreover, according to the ruling, Huawei’s and ZTE’s affiliates and subsidiaries will also be treated as a national threat.
Ajit Pai, Chairman FCC, said:
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.
The official statement reads:
Both companies have close ties to the Chinese Communist Party and China’s military apparatus. They are also both subject to a Chinese law that obligates them to cooperate with the country’s intelligence services.
Despite constant US pressure, the Chinese tech giant Huwaei has always maintained that it will never hand over customers’ data to the government. And has somehow managed to trudge through everything the US has thrown at it and continued to grow.
This new development makes it impossible for American companies to keep any sort of ties with any of the two companies.