U.S. regulators bar use of government funds for Huawei, ZTE over security concerns

U.S. communications regulators have cut off government funding for equipment from two Chinese companies, citing security threats.

The Federal Communications Commission also proposed requiring companies that get government subsidies to rip out any equipment from Huawei and ZTE that they already have in place.

It’s the latest action by the U.S. government against Chinese tech and telecom companies.

The FCC voted unanimously Friday to bar U.S. telecommunications providers from using government subsidies to buy equipment from Huawei or ZTE. The FCC’s order mostly affects small, rural companies, as larger U.S. carriers do not use equipment from those Chinese companies.

In a statement Saturday, Huawei urged the FCC to reconsider what it called a “profoundly mistaken” and “unlawful order.”

It said the decision was “based on selective information, innuendo, and mistaken assumptions” and that “these unwarranted actions will have profound negative effects on connectivity for Americans in rural and underserved areas across the United States.”

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