FCC Designates Huawei as National Security Threat

In the ongoing confrontation between the U.S. government and Chinese telecom giant Huawei, the U.S. has dealt another major blow. The Federal Communications Commission issued an order on June 30, effective immediately, declaring that "funds from the Commission's Universal Service Fund [(USF)] may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by Huawei." The commission determined that Huawei is a national security threat based on the "totality of the evidence" surrounding the company. The $8.3 billion per year USF provides federal funds to telecommunications providers through different mechanisms to make such services affordable to residents in certain high-cost regions, low-income customers, rural health care providers, and eligible schools and library.

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