The Federal Communications Commission (FCC) said on Tuesday that it has rejected ZTE’s petition, which requires ZTE to reconsider its decision to designate the Chinese company as a threat to the U.S. national security of the communications network.

The FCC announced in June that China’s Huawei and ZTE were officially designated as threats. This statement prohibits US companies from using US$8.3 billion (approximately Rs 61,440 crore) of government funds to purchase equipment from these companies.

ZTE did not immediately respond to a request for comment.

Last week, the FCC said it would extend the deadline for responding to Huawei’s petition to December 11, “in order to fully and fully consider this huge record.”

In May 2019, President Donald Trump signed an executive order prohibiting U.S. companies from using telecommunications equipment manufactured by companies that pose a national security risk, and the government included Huawei on its trade blacklist.

The FCC will vote on the rules on December 10 to help operators remove and replace equipment from companies with cybersecurity risks.

FCC Chairman Bayern (Ajit Pai) said last week that the committee will deal with two unspecified national security issues at its December 10 meeting.

In April, the FCC revealed that it might close the US operations of three state-controlled Chinese telecommunications companies: China Telecom, China Unicom and Pacific Networks and its subsidiary ComNet (US).

Nearly 20 years of authorization has enabled Chinese telecommunications companies to provide interconnection services for telephone calls between the United States and other countries.

Last week, the FCC stated that it was recovering the international signalling point codes assigned to China Telecom (USA) and stated that it has determined that “these three codes are no longer in use.” China Telecom did not immediately comment.

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Last month, the FCC asked the Department of Justice to weigh whether China Unicom’s business in the United States constitutes a security risk.

In May 2019, the US Federal Communications Commission voted unanimously to deny the right of another Chinese state-owned telecommunications company, China Mobile, to provide US services, citing concerns that China might use the approval to spy against the US government.

© Thomson Reuters 2020

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