Huawei and ZTE Targeted While Security Ban Advances at U.S. FCC

  • Federal Communications Commission advances spending bar
  • Huawei, ZTE are sources of concern for U.S. officials
Jefferies’ Edison Lee weighs in on the U.S. decision to ban ZTE from buying crucial American technology for 7 years.(Source: Bloomberg)
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U.S. regulators moved to extend a crackdown on China equipment makers as security risks, backing a ban on federal subsidies to buy networking gear from manufacturers such as Huawei Technologies Co. and ZTE Corp.

The Federal Communications Commission voted 5-0 on Tuesday in favor of banning federal funds from being spent with companies determined to be a risk to U.S. national security. The ban won’t be final until a second vote by the FCC, which in a draft order noted congressional scrutiny of Huawei and ZTE as possible security threats.