March 27, Ajit Pai, chairman of the U.S. Federal Communications Commission, announced that the commission will take action on April 17 to block U.S. mobile phone operators from using federal funds to purchase Huawei products or services. To vote. This proposal is to prevent these operators from using inexpensive but potentially dangerous network equipment in the upcoming 5G network. According to the proposal, all US operators will be banned from using the Federal Communications Commission’s 8.5 billion U.S. dollars Service Fund (USF), used to purchase equipment or services from any company that poses a security threat to US national security. USF charges fees from individual telephone customers to improve telecommunication services for low-income, rural, educational, and high-cost regional customers.
Although Pai’s statement only refers indirectly to Huawei and ZTE, senior FCC officials have confirmed that the proposal has explicitly involved the two companies. After years of investigations by the US Congress on the company's 'secret activities', U.S. intelligence agencies and legislatures began aggressively attacking Huawei and ZTE products and services early this year for security reasons. Just last week, US operators and retailers confirmed that they were removing Huawei's hardware from stores. Both Chinese companies refuted the United States' claim as groundless and focused on other countries.