US President Joe Biden signed a law preventing Asian tech companies Huawei and ZTE from submitting new applications for licenses, even if no federal funds are involved, according to the Engadget.
This new legislation is valid for the granting of licenses for new network equipment but also conditions renewals, where the Secure Equipment Act determines that the country's communications regulator, the FCC - Federal Communications Commission, now has the right to prohibit the issuance of licenses for equipment and services from companies on the list of manufacturers with solutions that pose a threat to national security. It is list (Covered Equipment or Services List) was introduced by the FCC in March and includes five Chinese companies, with Huawei and ZTE being the best known on their list.
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Since 2020, these two Chinese companies have been subject to restrictions by the new US administration, but until recent days, they could submit requests to the US Federal Communications Commission. With this new law signed by Biden, the two companies will no longer be considered by the regulatory body in that country.
In defense mode, the US government, in the person of the head of the US Federal Communications Commission, Brendan Carr, alleges that Huawei and ZTE put “unacceptable risks to national security”, noting that the measurement is “appropriate".
