President Trump on Thursday signed into law a bill that banned the use of federal funds for the purchase of devices from telecom companies, such as Chinese security group Huawei, considered a national security threat.
The Secure and Trusted Communications Act, which was approved by the Senate in February and approved by the House last year, set up a billion-billion-billion Federal Communications Commission (FCC) to help small telecom groups remove existing equipment. Will also need to be considered a threat.
Senate Commerce Committee Chairman Roger Wicker (R-Miss), whose committee favours 5G security, praised Trump for signing the law.
United States President Donald Trump has now signed a law, which means that the federal budget will no longer allow tax deductions to buy products from Huawei and comparable companies.
The so-called Secure and Trusted Communication Act was previously passed by the Senate and House of Representatives. The new law makes it clear that companies that are considered a threat to national security are no longer considered business partners of US officials. However, this restriction applies only to state-owned enterprises, private sector operators are not affected, as the American Political Magazine’s The Hill has revealed.
Accordingly, major operators of the mobile network can continue to buy from Huawei. However, after that, they will have to take account of the consequences in other places. For example, this would result in the loss of government contracts, which could create problems for the business.
Nonetheless, officials and other state actors are among the largest individual consumers with some of the largest corporations as well as the highest sales.
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In another way, the law will still have a very direct impact on the private sector. It also includes a regulation that requires the FCC to put $ 1 billion in the pot. The money would then be used to help small telecommunications operators replace other installed devices with other suppliers’ products.
Which suppliers are affected by the new legal requirements depends on the same list that the FCC has. Apart from Huawei, ZTE is currently on it as another Chinese supplier. It is assumed that the two companies will introduce risks to key infrastructures of other countries, enabling them to spy if necessary. At least this is also a measure that the US Secret Service has used to hide targets in other states.
Other measures have already been taken against Huawei, including adding the group to the Commerce Department’s “entity list” last year, effectively blacklisting Huawei. On Thursday, bipartisan lawmakers in the House and Senate introduced a bill that would put the company on the Treasury Department’s list of specially-designated citizens and separate Huawei from the US financial system.