Tech war: FCC says reinstating ‘net neutrality’ rules could boost agency’s authority to remove Huawei, ZTE equipment from US networks

FCC’s proposal to reinstate net neutrality rules also seeks to prohibit use of Chinese gear in other network infrastructure, including data centres
Washington’s efforts to counter Chinese tech giants Huawei and ZTE come amid US fears that Beijing could use their equipment to spy on Americans

US-China tech war

Reuters

Published: 4:06pm, 29 Sep 2023

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Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel said on Thursday that the agency’s proposal to reinstate net neutrality rules could give it new authority to force the removal of equipment from China-based Huawei Technologies and ZTE Corp from US networks, including data centres.

The 129-page proposal asks for public input if new rules designed to bar internet service providers from blocking or throttling traffic, or offering paid fast lanes, would give the FCC “more robust authority to require more entities to remove and replace covered Huawei and ZTE communications equipment and services”.

It also asks if the authority would allow it to prohibit Chinese equipment in any network infrastructure used to route or transmit communications, including data centres and internet exchange facilities.

Huawei and ZTE did not immediately respond to requests for comment.

Federal Communications Commission chairwoman Jessica Rosenworcel speaks during an oversight hearing in Washington on June 24, 2020. Photo: AFP-Getty Images

The FCC in November banned approvals of new telecommunications equipment from Huawei and ZTE, saying they posed “an unacceptable risk” to US national security.

In September 2022, the FCC named Chinese telecoms companies Pacific Networks and China Unicom (Americas) as threats to US national security under a 2019 law aimed at protecting communications networks.

It previously revoked or denied authority to Chinese telecoms companies to operate telecommunications services in the US.

The FCC said the net neutrality rules would enhance the agency’s “ability to protect the nation’s communications networks from entities that pose threats to national security”.

US FCC bans equipment sales and imports from Huawei, ZTE over national security risk

Rosenworcel said existing “authority does not cover broadband. This is a national security loophole that needs to be addressed”.

The proposal faces an initial October 19 vote and also asks if the FCC could prohibit internet service providers from entering into traffic exchange arrangements with some companies on national security grounds.

The Chinese embassy in Washington said previously that the FCC “abused state power and maliciously attacked Chinese telecoms operators again without factual basis”.

Huawei has repeatedly denied allegations of wrongdoing and said the US government has “unlawfully and irrationally” targeted the company.

Huawei’s Meng Wanzhou sees continued global expansion of 5G mobile services

Washington’s efforts to counter the Chinese tech giants come amid US fears that Beijing could use them to spy on Americans. Washington has for years pressured US allies not to use Huawei or ZTE equipment on 5G networks or remove gear from these companies in existing networks.

The FCC designated Huawei and ZTE as threats, requiring US carriers to remove their gear or be frozen out of an US$8.3 billion government fund to purchase new equipment. However, to fund the so-called rip-and-replace effort, Congress only appropriated US$1.9 billion.