Perspective: China syndromeFCC Bans Use of Federal Funds in Purchases of Chinese Telecom

The Federal Communications Commission (FCC) on 22 November blocked U.S. telecommunications providers from using an $8.5 billion subsidy fund – the FCC’s Universal Service Fund (USF) — to buy Chinese-made telecommunications gear deemed a national security threat to critical infrastructure.

Mark Rockwell writes in FCW that the rules would also require telecommunications carriers which receive money from the fund to certify that their equipment is made by vendors other than ZTE and Huawei.

Rockwell writes:

Federal regulators, intelligence and law enforcement officials have said that given Huawei and ZTE’s close relationship and legal obligations to the Chinese government, their gear poses a threat to telecommunications critical infrastructure, as well as to national security. They say the equipment may have backdoors that could allow the Chinese government to meddle with U.S. critical network infrastructure or open the door to massive, crippling data theft.

In a Nov. 22 statement on the new rule, FCC Chairman Ajit Pai said Huawei and ZTE “pose a national security threat to the integrity of communications networks or the communications supply chain.”

“Given the threats posed by Huawei and ZTE to America’s security and our 5G future, this FCC will not sit idly by and hope for the best,” said Pai.

“Today, we not only ensure that the federal funds in the USF are not spent on equipment or services from these suppliers, but we also propose a process to remove such equipment already deployed in USF-funded networks,” he said.