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FCC Will No Longer Allow Telecom Giants To Use Subsidies On Chinese Big Tech Products

WANG ZHAO/AFP/Getty Images

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Chris White Tech Reporter
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Major U.S. internet companies can no longer use subsidies to buy equipment from Chinese mega supplier Huawei, federal regulators ruled Friday.

National security risks are too great to allow telecommunication companies to use subsidies on Huawei and ZTE, both of which U.S. officials say are in league with the Chinese government,  the Federal Communication Commission noted in its ruling.

Huawei pushed back against the decision. The order “is based on nothing more than irrational speculation and innuendo, the company said in a statement Friday. Huawei officials say they will continue to work with all U.S. agencies on security issues.

Huawei often denies that it operates at the behest of Beijing. (RELATED: Huawei Exec Detained On Bribery Suspicions)

US President Donald Trump (L) and China's President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017. Donald Trump urged Chinese leader Xi Jinping to work "hard" and act fast to help resolve the North Korean nuclear crisis, during their meeting in Beijing on November 9, warning that "time is quickly running out". / AFP PHOTO / Nicolas ASFOURI (Photo credit should read NICOLAS ASFOURI/AFP/Getty Images)

US President Donald Trump (L) and China’s President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017. (Photo credit should read NICOLAS ASFOURI/AFP/Getty Images)

Those promises of commercial independence haven’t made much headway as U.S. government officials and lawmakers make their case to wallop the Chinese mega company. President Donald trump placed Huawei and others on a list in May prohibiting them from doing business with American companies.

Some of the companies on the list can do business with American entities provided they have government licenses.

Chinese products “could suck up data, disrupt service or launch denial-of-service attacks,” commissioner Jessica Rosenworcel said. “I have only one complaint with this effort — that it took us so long to get here.”

The White House’s chief technology official praised the FCC’s move.

America continues to lead by example — Important action taken today by the FCC to address the national security risks posed to our communications supply chain by dangerous foreign suppliers who threaten our collective security,” Michael Kratsios, Trump’s chief technology officer, wrote in a tweet Friday.

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