Experts say latest US measures have limited impact on Chinese tech companies

A visitor uses his mobile phone as he walks past Huawei’s booth at an industrial exhibition in Beijing. [Photo provided to China Daily]

The U.S. government’s latest attempt to crack down on Chinese telecoms and tech companies like Huawei Technologies Co will have limited impact on their business, but the move once again shows Washington is abusing national security grounds, said Monday. experts.

Their comments came after the US Senate voted last week to approve legislation to prevent companies such as Huawei and ZTE Corp, which were believed to pose security threats, from receiving new equipment licenses from the from US regulators.

Bai Ming, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the US government has abused the concept of national security to contain the rise of Chinese telecommunications companies.

This mixes politics with normal business cooperation, and such practices will ultimately harm the rights and interests of American consumers, Bai said.

The Secure Equipment Act, passed last week by the United States House of Representatives, will prohibit the United States Federal Communications Commission from reviewing or issuing new equipment licenses to companies on the “Equipment List.” or covered services ”of the FCC.

The move came after the FCC alleged five Chinese companies posed national security threats in March. Besides Huawei and ZTE, the other three Chinese companies involved are Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co and Zhejiang Dahua Technology Co. They provide communication services or video surveillance products and solutions.

ZTE said in a statement Monday that the Secure Equipment Act will have limited impact on its overseas operations, with the U.S. market accounting for less than 1% of its revenue from January to September.

Huawei said as early as 2019 that the company’s revenue in the United States was negligible.

The other three companies did not immediately respond to requests for comment.

Xiang Ligang, chief executive of the Information Consumption Alliance, an association of the telecommunications industry, said the above five Chinese companies now have a very limited commercial presence in the United States.

The Secure Equipment Act has virtually no significant impact on their business. It looks more like a signing that the U.S. government continues to abuse political and legislative power to contain the rise of Chinese telecommunications and tech companies.

Last week, the U.S. government ordered China Telecom Americas to shut down services within 60 days, also on charges of security risks.

In response, Chinese Ministry of Commerce spokesman Shu Jueting on Thursday called on the US side to immediately correct its wrongdoing and provide a fair, open, just and non-discriminatory business environment for Chinese companies investing and operating in the United States. United.

Previous Is the stock no longer sloping? - Share register
Next The telecommunications bailout is not a silver bullet

No Comment

Leave a reply

Your email address will not be published.