Biden administration further restricts Huawei, ZTE amid "security threats"

Tech giants Huawei and ZTE continue to face challenges in the US market under the administration of President Joe Biden as the latter moved to further restrict Chinese companies from doing business with American firms.

File photo: Huawei logo

After Trump administration, Chinese companies face new hurdles

Biden signed this week the legislation that would prevent China's companies like Huawei and ZTE to secure equipment licenses from US regulators.

The Secure Equipment Act, the latest blow against Chinese telecom and tech companies, was approved unanimously by the US Senate and House.

The new law demands the Federal Communications Commission (FCC) to no longer review or approve any authorization application for equipment that poses risk to US security.

The law will help to ensure that insecure gear from companies like Huawei and ZTE can no longer be inserted into America’s communications networks, FCC Commissioner Brendan Carr said.

Earlier this year, the FCC named five companies that pose a threat to the country's national security. These are Huawei and ZTE, as well as Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co, and Zhejiang Dahua Technology Co.

Zhao Lijian, a spokesperson at China's foreign ministry, in June claimed the Biden administration "still abuses national security and state power to suppress Chinese companies".

He further stressed that the US moves against Chinese companies "without evidence".

Source: Reuters