London Daily

Focus on the big picture.
Wednesday, Jun 24, 2026

US telecoms regulator designates China’s Huawei, ZTE as national security threats

US telecoms regulator designates China’s Huawei, ZTE as national security threats

US tech firms are banned from using Universal Service Fund to purchase or support any equipment or services provided by these suppliers. The announcement is a step forward in restricting 5G technological equipment made by Chinese companies from entering US telecoms infrastructure

The US telecommunications watchdog on Tuesday designated two Chinese companies – Huawei Technologies and ZTE – as security threats and banned American firms from using a fund to purchase their products.

Federal Communications Commission Chairman Ajit Pai said in a statement: “Based on the overwhelming weight of evidence,” the agency has identified the two companies as well as their parents, affiliates, and subsidiaries “as national security risks to America’s communications networks – and to our 5G future”.

“Both companies have close ties to the Chinese Communist Party and China’s military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country’s intelligence services,” said Pai.

American tech firms will not be authorised to use money from the FCC’s annual US$8.3 billion Universal Service Fund to purchase or support any equipment or services provided by these suppliers, effective immediately.

The Universal Service Fund, established in 1997, is a programme of telecoms subsidies for companies to purchase equipment and service to maximise telecoms services access in the country. The programme typically funds between US$5 billion to US$8 billion each year.

Meanwhile, British Prime Minister Boris Johnson toughened his stance on Huawei, telling reporters on that on the company, “the position is very, very simple.”

“I do want to see our critical national infrastructure properly protected from hostile state vendors, so we need to strike that balance and that’s what we’ll do,” said Johnson.

A Huawei representative didn’t immediately respond to an email seeking comment.

Tuesday’s announcement by the FCC is a step forward in restricting 5G technological equipment made by Chinese companies from entering US telecommunications infrastructure.

And Britain’s statement showed a sea change in Huawei’s position in Europe, where a number of governments have been resisting requests by the Trump administration to exclude the Chinese telecoms provider.

Johnson, who in January allowed Huawei a limited role in Britain’s 5G network, has faced intense pressure from its own lawmakers to ban the 5G equipment maker for security reasons.

UK’s Culture Secretary Oliver Dowden told Parliament Tuesday that Huawei will not be part of the UK’s 5G networks in the long term, adding that he welcomes approaches from alternative vendors including South Korea’s Samsung Electronics and Japan’s NEC.

The FCC has proposed that Huawei and ZTE be added to this rule since November. The companies posed a national security threat to the integrity of communications networks or the communications supply chain, the FCC had said then.

In March, US President Donald Trump signed legislation to bar rural telecoms carriers from using US subsidies to purchase network equipment from companies deemed a national security threat, including Huawei and ZTE. Existing products in the system are required to be ripped out and be replaced.

The FCC is establishing a programme to assist small providers with the costs of removing prohibited equipment or services from their networks.

“Once you get through all of that rip and replace, you clear out the underbrush problems of 5G spectrum, you start looking at how can the government compete against the Chinese government who, I would argue, illegally subsidises these contracts around the world,” said Mike Rogers, former House Intelligence Committee chairman.

“Then look at what benefits we can give to research and development for things like Open RAN or other technologies that are closing on the horizon. We need to ramp all of that together and understand that we’re going to be competitive. It’s in our national security interest,” Rogers said on Tuesday at a discussion about 5G hosted by the United States Telecom Association, a trade organisation representing companies such as AT&T and Cisco.

The US telecoms authority has been cracking down on Chinese firms after Congress criticised that the government agencies – Homeland Security, Justice and Defence – which advise the FCC on national security risks lacked consistent oversight in analysing threats by Chinese telecommunications companies.

US government officials have warned that Chinese state-owned carriers are subject to exploitation, influence, and control by the Chinese government and can be used in the Chinese government’s cyber and economic espionage efforts targeted at the United States.

ZTE, a Chinese telecoms giant, was cut off from doing business in the US in 2018 after the government found out the firm sold products to US-sanctioned Iran.

The company later agreed to pay US$1.4 billion in fines and was saved from the brink of collapse after US President Donald Trump directed the Commerce Department to lift the ban as a favour to his Chinese counterpart Xi Jinping.

Huawei – the Chinese telecoms company that is a key player in next-generation 5G technology – has been a top target by the Trump administration. The company was placed on an “entity list” last May, barring it from buying critical components from its American suppliers.

Telecommunications companies, while acknowledging the importance to safeguard national security, cautioned against policies that simply excludes Chinese firms.

“Things like the export control restrictions and other things that the US government’s looking at vis-a-vis China are so significant. But at the end of the day, industry needs to have a broad base of suppliers,” said Chris Boyer, vice-president of global security and technology policy at AT&T on Tuesday. “What we’d like to see is policies that will help advance more competition and more diversity in the supply chain.”

The FCC has recently moved toward revoking the licenses or refused to issue licenses for China Mobile, China Telecom, and China Unicom, commonly referred to as the “Big Three”, to provide telecoms services in the US.

Also on Tuesday, Indian government ministers discussed the 5G rollout plans and whether Huawei should be allowed to participate, according to a report from the The Times of India.




Newsletter

Related Articles

0:00
0:00
Close
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
South London NHS Estates Workers Ballot for Strike Action Over Pay Disputes Across Major London Hospitals
Barclays Warns of Severe Cyber Security Gap Between Large Corporations and Small Businesses in the United Kingdom
United Kingdom Government Allocates £60 Million for Artificial Intelligence Research Laboratories at Oxford and UCL
National Health Service Approves Teplizumab Treatment to Delay Onset of Type One Diabetes in First European Rollout
Met Office Issues Rare Red Extreme Heat Warning Across London, South East and West Midlands as Transport and Health Systems Face Disruption
Prime Minister Keir Starmer Resigns After Labour Party Revolt Following Economic Stagnation and Local Election Losses
United Kingdom Economy Contracts for Second Consecutive Month as Private Sector Weakens and Job Loss Fears Rise
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
×