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China says US ‘oppressing’ Huawei with ‘national security risk’ label

On Wednesday, China demanded that Washington stop “oppressing Chinese companies” after U.S. regulators declared that telecommunications equipment suppliers Huawei and ZTE were threats to national security.

The Federal Communications Commission on Tuesday prevented Chinese suppliers from receiving subsidies from a government fund, stepping up efforts to limit their access to the US market.

A Foreign Ministry spokesman accused Washington of “abusing state power” to harm Chinese companies “without any evidence”.

“Once again, we urge the United States to stop abusing the concept of national security, to deliberately discredit China and to unjustifiably oppress Chinese companies,” said spokesman Zhao Lijian.

US regulators say Huawei Technologies Ltd., the largest global manufacturer of telecommunications switching equipment, and its small Chinese rival ZTE Corp. they are controlled by the ruling Communist Party and say they can facilitate Chinese espionage.

Huawei and ZTE deny the US accusations. Huawei founder Ren Zhengfei said last year that he would refuse official demands to reveal his customers’ secrets, despite a law that requires Chinese companies to cooperate with intelligence agencies.

The FCC said the money from its $ 8.3 billion a year Universal Service Fund, which subsidizes the purchase of equipment for some operators, can no longer be used to purchase Huawei or ZTE equipment.

The FCC “designated Huawei and ZTE as national security risks,” said agency president Ajit Pai in a statement. He said that companies “threaten our national security”.

The decision mainly affects small rural operators, because the main US telephone companies do not use Chinese equipment.

The FCC had previously prevented Huawei and ZTE from receiving other government subsidies.

The FCC said the money from its $ 8.3 billion a year Universal Service Fund, which subsidizes the purchase of equipment for some operators, can no longer be used to purchase Huawei or ZTE equipment.

The FCC “designated Huawei and ZTE as national security risks,” said agency president Ajit Pai in a statement. He said that companies “threaten our national security”.

The decision mainly affects small rural operators, because the main US telephone companies do not use Chinese equipment.

The FCC had previously prevented Huawei and ZTE from receiving other government subsidies.

News Reporter

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