The United States Strengthens Sanction Against The Chinese Firm

Huawei: The United States Strengthens Sanction Against The Chinese Firm

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The United States has just tightened restrictions on Huawei and Chinese companies. New legislation will prohibit the FCC from allowing Huawei and other designed network equipment into the U.S. infrastructure.

A few days ago, a Reuters report showed that sanctions against Huawei have eased significantly since Joe Biden took office.

In the space of a few months, the Biden administration has granted 113 export licenses to suppliers wishing to sell technology to Huawei. Previously, Washington routinely denied most requests for waivers.

These relaxations have not been appreciated by many elected Republicans. Determined to hinder the Chinese group’s plans, some senators introduced a bill called the Secure Equipment Act before their peers.

The bill was quickly passed unanimously by the U.S. Senate. The text must now be ratified by President Joe Biden.

Huawei Network Equipment Banned From The United States

This new legislation aims to crack down even harder on Chinese telecom and technology companies, including Huawei and ZTE.

Specifically, it prevents these companies from obtaining new waivers to work with U.S. operators from the FCC (Federal Communications Commission).

According to Brendan Carr, the current head of the FCC, the measure will “ensure that unsecured equipment from companies like Huawei and ZTE can no longer be inserted into U.S. communications networks”. Back to square one for manufacturers from China.

Nevertheless, the export waivers granted by Washington remain valid for a period of 4 years.

However, these waivers already granted do not allow Huawei’s network equipment to be integrated into US infrastructures, which could penalize rural operators.

However, Huawei and ZTE can still export certain U.S. technologies and file additional applications to do so. The Secure Equipment Act only restricts the scope of Huawei’s network division.

Not surprisingly, U.S. lawmakers accuse Huawei, and Chinese firms, of posing a threat to U.S. national security.

“State-run Chinese companies like Huawei and ZTE are known threats to national security and have no place in our telecommunications network” charges Marco Rubio, Republican senator from Florida.

Huawei’s future has thus become violently darker. At the same time, the group’s turnover has plunged by 32% over a year.

 

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