Huawei and ZTE are definitely far from the United States’ favorite companies. The two tech giants have faced sanctions in recent years from the North American country. These sanctions have greatly affected their businesses and cost them millions of dollars. Unfortunately, their troubles are from over.

Huawei + ZTE

The United States’ Federal Communications Commission, yesterday, classified both companies as national security threats to the nation’s communications networks. The ruling is said to also affect their affiliates and subsidiaries.

With today’s orders, and based on the overwhelming weight of evidence, the bureau has designated Huawei and ZTE as national security risks to America’s communications networks – and to our 5G future.
– Ajit Pai, Chairman FCC.
The official statement released by the agency said “both companies have close ties to the Chinese Communist Party and China’s military apparatus. They are also both subject to a Chinese law that obligates them to cooperate with the country’s intelligence services”. Huawei has always maintained that it will never hand over customers’ data to the government.

It was also stated that the new development makes it impossible for American businesses to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by Huawei and ZTE using money from the FCC’s $8.3 billion Universal Service Fund.

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