The US Federal Communications Commission is moving against Chinese companies, Huawei Technologies and China Telecom.
According to the reports, a series of ruling over national security ruled in favor against both companies, which allegedly have ties to the Chinese government.
In the voting, the FCC voted 5-0 and ordered telecommunications operators to remove Huawei made equipment from their systems. Similarly, the agency also asked whether to end China Telecom’s permission to operate in the US.
Both Huawei and China Telecom that have a very small percentage of revenue from the US have yet to respond to this matter at the moment.
On the other hand, FCC Chairman Ajit Pai, “Security agencies contend the company hasn’t complied with cyber security and privacy laws, and provides opportunities for Chinese state-sponsored economic espionage and disruption of U.S. communications traffic.”
He further added to his statement that,
“The company is owned by the Chinese government.”
As per reports, the FCC had also barred the use of US subsidies to purchase telecom equipment from Huawei and ZTE. This decision was made over security risk, which both companies have denied.