US FCC votes 5 to 0 to bar Huawei, ZTE from Govt. subsidy program

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US FCC votes 5 to 0 to bar Huawei, ZTE from Govt. subsidy program

Late on Friday, the 22nd of November 2019, the US FCC (Federal Communication Commission) had voted 5 to 0 to prevent access of China’s technology conglomerate Huawei alongside ZTE into government subsidy programs, citing potential national security risk, which in effect would prevent US rural network carriers from tapping into an $8.5 billion worth of government fund to purchase equipment.

Aside from that, the Federal Communication Commission, United States’ telecommunication regulator had also voted to propose a suspension and replacement of Huawei- and ZTE-made equipment from existing network, while the move would likely to eradicate a critical source of funding for Huawei’s largest US business, selling off of telecommunication equipment.

In point of fact, latest FCC decision came forth a couple of days after the US Commerce Ministry had signaled a 90-day extension for US suppliers to continue business with Huawei, which had been facing off a crippling US blacklisting since May this year following a pre-mature break off of trade talks between Washington and Beijing.

Nonetheless, followed by the reveal of FCC decision, a spokeswoman for Huawei Technologies had cited the order unlawful and urged the Federal Communication Commission to rethink its mistakes, arguing, “FCC’s decision was based on nothing more than irrational speculation and innuendo. ”