U.S. Orders Telecommunications Companies to Remove Huawei Equipment

The U.S. FCC has ordered some U.S. telecommunications companies to remove Huawei equipment from its network.

The FCC has also begun the process of de-licensing China Telecom to operate in the United States.

The so-called "shredding and replacement" order is the latest U.S. move against Huawei for national security reasons. The order includes subsidies for small telecommunications companies to remove and replace equipment. In fact, however, UNHCR cannot make payments without approval of funding from Congress.

"Huawei has close ties with China's military and intelligence communities as well as the Communist Party, and these relationships exist at "every level of the company — even its founder," said FCC Chairman Ajit Pai.

"Concerns about Huawei are not just hypothetical: independent entities have identified many security vulnerabilities in Huawei's equipment, and have found them less secure than those of other companies, and vulnerabilities may be intentionally present," Pai said.

"Huawei is also subject to strict laws requiring the company to assist and cooperate with Chinese intelligence agencies, and preventing it from disclosing such assistance," Pai said.

The FCC will publish a list of communications equipment and services identified as a threat to national security. She estimated that the program would require at least $1.6 billion to compensate eligible service providers who often take federal subsidies to provide service in rural United States.

Huawei has long denied US accusations that it is a government-run company that poses a threat to national security. In a statement, the company expressed disappointment with the decision.

"This abuse puts U.S. citizens at risk in largely disadvantaged rural areas — during the epidemic — when reliable communication is necessary," the company said.

The FCC also on Thursday rejected a petition from Huawei asking the agency to reconsider its decision to classify the company as a threat to national security of communications networks.

The FCC has also begun a process of de-licensing China Telecom to provide local state-to-state and international communications services within the United States."