Cybersecurity

FCC Can Block Subsidized Purchases of Huawei’s 5G Technology

  • New Orleans appeals court sides with FCC against Huawei
  • FCC claims Chinese company tied to military intelligence
Photographer: Ian Forsyth/Bloomberg
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Huawei Technologies Co. can’t subsidize the sale of its 5G telecom technology with federal funds earmarked for U.S. broadband development because the Federal Communications Commission properly determined the company is a national security threat, a U.S. appeals court ruled.

Huawei sued to overturn a 2019 FCC order barring the use of taxpayer funds to subsidize purchases from the Chinese company over concerns its equipment and network are vulnerable to hackers and too closely tied to Chinese military intelligence.