The US bans Huawei sales in crackdown on Chinese tech giants

The US has made lots of moves cracking down on Chinese tech, especially to limit the reach of China's telecommunication companies into US networks.

The US bans Huawei sales in crackdown on Chinese tech giants
A person stands by a sign of Huawei during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song/File Photo

The US has made lots of moves cracking down on Chinese tech, especially to limit the reach of China's telecommunication companies into US networks. From export controls since the Trump administration to the recently proposed restrictions on TikTok to limit China's access to US user data – all of this is over concerns of a national security risk from Beijing. In 2019, the US Department of Justice charged Huawei's CFO, Meng Wanzhou, with stealing trade secrets. The US also banned government agencies from buying Huawei products the same year.

On Friday, US regulators officially banned sales of all electronics produced by Chinese tech giants Huawei and ZTE, saying they pose "an unacceptable risk" to national security. The US Federal Communications Commission (FCC) also named the Chinese surveillance equipment maker Dahua, connected-camera providers Hikvision and telecoms firm Hytera Communications among the five Chinese companies on its "covered list." Huawei declined to comment. ZTE, Dahua, Hytera and the Chinese embassy in Washington did not immediately respond to requests for comment. As for Hikvision, it said in a statement that its products don't threaten US security.

Key comments:

"The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here," said US FCC Chairwoman Jessica Rosenworcel in a news release. "These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications."

"This is the death knell for all of them for their US operations," said Conor Healy, director of government research for the Bethlehem, Pennsylvania-based surveillance research group IPVM. "They won't be able to introduce any new products into the US."

"Some of the information TikTok provided during the staff briefing appears to be untrue or misleading, including that TikTok does not track US user locations," Republican lawmakers wrote in a letter to TikTok CEO Shou Zi Chew.