A day after the Indian government banned 59 Chinese Apps, the US on Tuesday designated two Chinese companies- Huawei Technologies Company and ZTE Corporation as "national security threats". Announcing this on Twitter, Federal Communications Commission Chairman Ajit Pai stated that the money from the FCC's Universal Service Fund worth Rs.8.3 billion dollars cannot be used to buy, improve or support any equipment or services provided by these suppliers. This decision was taken after receiving inputs from the US Congress, Executive Branch, intelligence community, allies, and communications service providers.
Pai stressed that Huawei and ZTE have close ties to the Chinese Communist Party and China's military apparatus. According to him, both companies being subject to Chinese law obligates them to cooperate with the nation's intelligence services. The FCC Chairman observed that this was a clear message that the US government would not permit the Chinese Communist Party to exploit vulnerabilities in the US communications network and exploit the critical communications infrastructure. Pai added that this action shall protect the FCC's Universal Service Fund from being used to underwrite these suppliers, which threaten the US' national security.
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