On Thursday, US President Joe Biden signed legislation prohibiting businesses like Huawei Technologies Co (HWT.UL) and ZTE Corp (000063. SZ) from acquiring new equipment licenses from US regulators.
The Secure Equipment Act, the latest effort by the US government to crack down on Chinese telecom and tech firms, was unanimously approved by the US Senate on Oct. 28 and by the US House on a 420-4 vote earlier this month.
Since 2018, the FCC has accepted more than 3,000 Huawei petitions, according to FCC Commissioner Brendan Carr. Carr stated that the measure “would help to ensure that insecure equipment from firms like Huawei and ZTE may no longer be introduced into America’s communications networks.”
Under a 2019 law designed at securing U.S. communications networks, the FCC classified five Chinese corporations as posing a national security concern in March.
Huawei and ZTE, as well as Hytera Communications Corp (002583. SZ), Hangzhou Hikvision Digital Technology Co (002415. SZ), and Zhejiang Dahua Technology Co, were among the firms identified (002236. SZ).
