Huawei, ZTE Deemed Untrustworthy By US Attorney General; End Of Chinese Manufacturers?

Huawei and ZTE's trouble in the US is far from over. However, both companies claim they will continue the battle against anti-trust issues. A letter published by the US Attorney General William Barr says that both Huawei and ZTE "cannot be trusted." The letter says that the Chinese firms are a security threat and backed the proposal to bar the US rural wireless carriers from purchasing or selling equipment and services.

Huawei, ZTE Anti-Trust Issues Continue

Huawei and ZTE will continue facing anti-trust issues. Barr's letter supports the FCC's Report and Order draft that restricts the Chinese companies from accessing the $8.5 billion from the FCC Universal Service Fund. Both Huawei and ZTE are popular for their smart gadgets like computers, routers, smartphones, and other internet equipment for regional, rural broadband providers.

Barr notes that some cautions are required as both Huawei and ZTE play a major role in the global 5G equipment market. "We will become even more dependent on those networks as more and more devices and services are connected and operate at unprecedented speeds," Barr said in the letter.

Appreciate the Attorney General's letter re: @FCC's supply chain order: "@TheJusticeDept supports . . . the proposed prohibition on the use of USF funds for companies like Huawei and ZTE and the launch of a process to remove and replace such equipment." https://t.co/pBymn4gtMS pic.twitter.com/K3ti9WMSFQ

— Ajit Pai (@AjitPaiFCC) November 14, 2019

Huawei, ZTE National Threat Says Barr

Continuing further, Barr writes that "we should not signal that Huawei and ZTE are anything other than a threat to our collective security, for that is exactly what they, through their actions, have shown themselves to be." The letter continues that both Huawei and ZTE's track record with the Chinese government cannot be trusted.

In response to the letter, FCC Chairman Ajit Pai said that the commission 'cannot ignore the risk'. He said that the Chinese government will seek to "exploit network vulnerabilities in order to engage in espionage, insert malware and viruses, and otherwise compromise our critical communications networks." After blacklisting Huawei in the US, the country has further urged other nations to not grant access to 5G networks to Huawei.

What Happens To Huawei, ZTE?

Following the letter, the Federal Communications Commission will vote on November 22. The vote proposes that the telecom carriers remove the equipment from the Chinese companies and be replaced. Neither Huawei nor ZTE have commented on the new update yet. However, Huawei had previously said that over its 30 years of business, the company has never faced any major security-related incidents in the 170 countries it operates.