Chinese firms face US ban
• Despite Trump deal, legislators seek to close the door on electronic products that ‘could be used for spying’
Chinese telecoms companies such as ZTE and Huawei face severely tightened access to the US market despite the Trump administration’s deal to give ZTE a lifeline after it agreed to a fine.
Chinese telecoms companies such as ZTE and Huawei face severely tightened access to the US market despite the Trump administration’s deal to give ZTE a lifeline after it agreed to a fine.
Amid persistent worries that their phones, routers and other products will open a path for Beijing’s spying on the US, analysts say the US government will remain broadly closed to products of the two companies and that the US telecoms industry will remain under pressure to avoid their equipment.
Four Democratic and Republican senators, criticising the deal that will allow ZTE to resume purchasing US electronics components, have proposed legislation for an outright ban on the government buying products and services from ZTE and Huawei.
“Huawei and ZTE pose a serious threat to America’s national security. These companies have direct links to the Chinese government and Communist Party,” said Republican senator Marco Rubio. “Their products and services are used for espionage and intellectual property theft, and they have been putting the American people and economy at risk without consequence for far too long.”
However, experts say the move could hinder the growth of next-generation 5G wireless networks in the US. The two Chinese companies are poised to become global leaders in the 5G roll-out, beginning in 2018.
“The overall concern is that these companies are close to the Chinese government,” said Paul Triolo, a China security specialist at the Eurasia Group.
With fifth-generation mobile technology, he said, the concern “becomes magnified” because the technology is heavily cloudbased, potentially leaving sensitive data accessible by the service provider.
US officials have repeatedly suggested that the two companies could design their equipment to allow Chinese intelligence to hack into American networks and siphon off personal data and communications from cellphones.
A 2012 congressional report said the use of Huawei and ZTE equipment in US critical infrastructure “could undermine core US national-security interests”. Intelligence and security chiefs told a US senate panel they would not use equipment from either company.
“We are deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks,” said FBI director Christopher Wray.
EXPERTS SAY THE MOVE COULD HINDER THE GROWTH OF NEXT-GENERATION 5G WIRELESS NETWORKS IN THE US