It is clear that the U.S is leaving no stone unturned to tarnish Huawei‘s reputation and making sure its offerings don’t reach customers. Last week, it was declared that FCC will soon vote on two proposals that revoke all American companies from having any sort of trade relations with ZTE and Huawei, both of which are Chinese corporations.
According to the official statement, the first proposal would fend off companies to receive money from FCC’s annual $ 8.5 billion Universal Service Fund, if they purchase equipment or services from Huawei or ZTE. The Universal Service Fund was set up in the the year 1997 and it allows telecom provideds to subsidise their services for low-income households.
On the other hand, the second proposal would require several rural wireless carriers to get rid of and replace equipment from ZTE or Huawei. The FCC will also asses the worth of equipment made by the two Chinese companies that is currently in use. Followed by financial assistance to help them migrate to alternatives.
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On the 29th of October, Huawei released a response statement which is as follows:
In 30 years of business, Huawei has never had a major security-related incident in the 170 countries we operate. Huawei is trusted by over two billion consumers, partners with many of the Fortune 500 businesses, and supplies more than 500 network operators around the world.
Banning specific vendors based on country origin will do nothing to protect America’s telecommunications networks. Today’s proposal, released by the FCC Chairman, only impacts the broadband providers in the most unserved or underserved rural areas of the United States. Such action will further widen the digital divide; slowing the pace of economic development without further securing the Nation’s telecommunications networks.
The FCC is aware of alternative measures that could solve both issues – continuing to enhance connectivity in those areas while actually improving the security of US networks – but Chairman Pai is choosing to also ignore what is considered best practices around the globe. Huawei remains open to engage with the US government and policy makers to find a productive solution to safeguard the US telecommunications system.
While their isn’t much Huawei can do about the situation, the recent statement exhibits a defensive stance. Lastly, only time will will what future holds for such Chinese corporations including ZTE and Huawei.
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