The smartphones business of both companies is growing worldwide, but their more mature telecom networks and equipment business once again hit the muzzle of the U.S. government. In the new proposal submitted to Congress in the name of safeguarding U.S. national security , Urging U.S. government agencies to ban service providers that use Huawei and ZTE technologies.
The proposal, sponsored by Texas Republican Michael Conaway, who is leading the investigation of the so-called "Russia's intervention in the U.S. election," was conducted in the past against Huawei, the world's largest Of telecommunications equipment vendors) and ZTE (ranked fifth) based on the relevant laws and decrees, including the prohibition of ZTE to the United States government agencies in 2013 to sell their products last year, the US politicians have also submitted a proposal to limit the Pentagon Chinese or Russian communication service provider buys any device.
Now, these bans may further escalate and eliminate any possible contact between Huawei and ZTE with the U.S. government. The ban requires that U.S. government agencies ban the entity from using telecom equipment manufactured by Huawei or ZTE (subsidiaries or affiliates) Telecommunications services provided by these entities prohibit the use of telecommunications equipment or services produced or provided by entities owned, controlled or involved by a foreign government.
Neither ZTE nor Huawei responded to a press request for comment at present, and a report released in 2017 showed that ZTE had contracted to sell equipment to the Pentagon and the Department of Homeland Security, but in addition, there was no proven contact.
Conaway's proposal was submitted to the National Assembly on January 9. In order to allow the House of Representatives to vote on the proposal, it first needs to be supervised and approved by the government reform committee. If these steps are successfully passed, it will be handed over to the Senate Vote, eventually signed by the president into law.
So this is the beginning of a very long process, but no matter how far the proposal goes, it is yet another clear sign that the U.S. government is wary of ZTE and Huawei.
ZTE and Huawei Technologies, two of China's most successful international technology exporters, last year admitted that ZTE violated U.S. sanctions against Iran and shipped products from the United States to Iran. When ZTE lied about the U.S. federal investigation last year , The United States government issued a $ 1.2 billion ticket to it.In addition to ZTE, the United States Department of Commerce is also currently investigating Huawei's business dealings in Syria, Cuba, Iran and Sudan.