The US Federal Communications Commission (FCC) has ordered several telecommunications companies to remove and replace Huawei equipment from their network.
The FCC order to "rip and replace" Huawei equipment from telecommunications systems is the latest initiative by the US government against the Chinese firm on grounds of national security.
Under the order, smaller companies will receive subsidies to remove Huawei parts from their systems and replace them. However, the FCC will not be able to implement these subsidies until the US Congress approves them.
FCC order on Huawei equipment
According to FCC chairman Ajit Pai, Huawei has close ties to the Chinese military and intelligence communities as well as the Communist Party. He claims that those relationshi[ps are at "every level of the company—all the way up to its founder".
Pai said: "The concerns about Huawei aren't just hypothetical: Independent entities have identified numerous security vulnerabilities in Huawei equipment and found it to be less secure than that of other companies—perhaps deliberately so."
The FCC chairman also pointed out that the Chinese firm is subject to "sweeping" laws that will require the company's assistance and cooperation with Chinese intelligence services, which the company will be prohibited from disclosing.
The commission will release a list of communications equipment and services it deems to be a national security risk. According to FCC estimates, the whole initiative will cost at least $1.6 billion to reimburse eligible providers, who mostly receive federal subsidies to provide service in rural areas of the country.
In response to the order, Huawei issued a statement saying: "This overreach puts US citizens at risk in the largely underserved rural areas - during a pandemic - when reliable communication is essential."
Aside from the order, the FCC has also denied a petition from the firm asking the it to reconsider its decision to designate the company as a national security threat to communications networks.
The US government has been increasing pressure on Huawei by further restricting its access to advanced computer chips essential in its telecommunications equipment and smartphones.
The most recent sanction requires global semiconductor firms that use US software and machinery to obtain a license from the US government first before they can supply to Huawei.
Ban on China Telecom
Aside from the Huawei order, the FCC is also in the process of revoking the authorization of China Telecommunications Corporation, also known as China Telecom, to "provide domestic interstate and international telecommunications services within the United States".
Back in April, China Telecom's subsidiary was asked to "show cause why the Commission should not start a process for revoking and terminating" its authorization and the FCC claims that it had "failed to provide a satisfactory response to the concerns".
