The US Federal Communications Commission has officially declared the Chinese technology company ZTE a threat to national security. ZTE is considered Huawei’s younger brother, and both companies are manufacturers of telecommunications equipment and smartphones and are based in China’s Shenzhen province, writes Capital.
The goal of the US authorities is to stop the distribution of equipment of the two companies in the less populated part of the USA, where they are preferred by telecoms, due to their lower price. Putting ZTE on its national threat list probably means that US telecommunications companies will not receive federal equipment maintenance subsidies in sparsely populated areas.
On December 10, the commission will decide exactly what the blacklisting rules will be. Both companies deny that they pose a threat to US national security.
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