London Daily

Focus on the big picture.
Tuesday, Oct 06, 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
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
×