ZTE’s Designation as Security Threat Affirmed by U.S. FCC
- Airwaves regulator shows continued tilt against ZTE and Huawei
- FCC contemplating formalizing rules to single out suspect gear
The FCC has said ZTE and Huawei pose a risk of espionage, an allegation each company denies.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The U.S. Federal Communications Commission affirmed its decision to designate ZTE Corp. as a national security threat over concerns telecommunications gear made by the Chinese company could be used for spying.
The action shows that the FCC remains determined to drive ZTE and fellow Shenzhen-based manufacturer Huawei Technologies Co. from the U.S. market, where small rural carriers rely on their cheap network equipment. The agency at its Dec. 10 meeting is to consider rules for listing prohibited gear, FCC Chairman Ajit Pai said in a Nov. 18 blog post that identified Huawei as a threat.