The Federal Communications Commission has classified Huawei and ZTE as national security threats, in a move that will bar US companies from using government money to buy products from the Chinese telecoms groups.
Ajit Pai, FCC chairman, said the move would prevent Huawei and ZTE from receiving any of the $8.3bn that the government provides to US companies to ensure that underserved areas of the country have telecoms services.
“Both companies have close ties to the Chinese Communist party and China’s military apparatus and both companies are broadly subject to Chinese law obligating them to co-operate with the country’s intelligence services,” Mr Pai said.
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