Five Chinese companies pose threat to U.S. national security: FCC

The Federal Communications Commission (FCC) on Friday designated five Chinese companies as posing a threat to national security under a 2019 law aimed at protecting U.S. communications networks.

The FCC said the companies included Huawei Technologies Co, ZTE Corp, Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co and Dahua Technology Co.

The Secure and Trusted Communications Networks Act of 2019 requires the FCC to identify companies producing telecommunications equipment and services "that have been found to pose an unacceptable risk to U.S. national security or the security and safety of U.S. persons."

Acting FCC Chairwoman Jessica Rosenworcel said in a statement: "This list provides meaningful guidance that will ensure that as next-generation networks are built across the country, they do not repeat the mistakes of the past or use equipment or services that will pose a threat to U.S. national security or the security and safety of Americans."

Last year, the FCC designated Huawei and ZTE as a national security threat to communications networks - a declaration barring U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies.

In February, Huawei challenged the declaration in a petition filed with the Fifth U.S. Circuit Court of Appeals. Huawei declined to comment on Friday on the new FCC designation. The other four companies could not be reached immediately for comment.

The FCC in December finalized rules requiring carriers with ZTE or Huawei equipment to "rip and replace" that equipment. It created a reimbursement program for that effort, and U.S. lawmakers in December approved $1.9 billion to fund the program.

Also in December, the FCC began the process of revoking China Telecom's authorization to operate in the United States as it took further steps to crack down on China's role in U.S. telecommunications.