On Wednesday, July 1, the Chinese Communist Party (CCP) accused Washington of “oppressing Chinese companies” after U.S. regulators declared the telecommunications providers Huawei and ZTE as threats to national security.
The statements rejecting the measures taken by the United States came after the Federal Telecommunications Commission (FCC) banned the use of 5G technology equipment manufactured by the two Chinese companies linked to the CCP.
“Both companies have close ties to the Chinese Communist Party and China’s military apparatus and both companies are broadly subject to Chinese law obligating them to co-operate with the country’s intelligence services,” FCC Chairman Ajit Pai said, according to the Financial Times.
Such a move would prevent the two companies from obtaining any of the $8.3 million the U.S. government subsidizes companies with as a measure to ensure that neglected areas of the country get telecommunications services.
Zhao Lijian, a spokesman for the Beijing Foreign Ministry, said that Washington was “abusing state power” to harm Chinese companies “without any evidence.”
“We once again urge the United States to stop abusing the concept of national security, deliberately discrediting China [the CCP] and unreasonably oppressing Chinese companies,” Zhao said, according to Time magazine.
Huawei founder Ren Zhengfei said last year he would reject official demands to reveal his clients’ secrets despite a law requiring Chinese companies to cooperate with intelligence agencies.
In March, the U.S. Congress passed a law providing up to $1 billion for operators to replace Chinese-made equipment.
Meanwhile, the Donald Trump administration is pushing its European allies to avoid Huawei as it seeks to expand next-generation or 5G telecommunications networks, according to Breitbart News.
Undersecretary of State Keith Krach said last week that Washington might be willing to help other countries pay for 5G from European rivals Nokia Corp. and LM Ericsson in an effort to avoid buying Huawei technology.
The U.S. Defense Department last week released a document that was drawn up two decades ago that lists 20 Chinese companies operating in the United States, which are linked to the Chinese People’s Liberation Army (PLA).
The list, which highlights companies such as Huawei and Hikvision, was designated by the Pentagon under the 1999 National Defense Authorization Law, which now gives President Donald Trump the power to invoke emergency economic powers allowing him to use economic sanctions against companies linked to the CCP military.
“The list put out by the Pentagon is a start but woefully inadequate to warn the American people about the state-owned and state-directed companies that support the Chinese government and Communist Party’s activities threatening U.S. economic and national security,” said Sen. Marco Rubio (R-Fla.), chairman of the Senate Intelligence Committee.