The US House of Representatives is scheduled to vote on a bill next week targeting Chinese telecommunications giants Huawei and ZTE Corp (000063.SZ), which the US government has identified as potential security threats.
The House announced on Tuesday that it will consider a bipartisan measure called the Countering Untrusted Telecommunications Abroad Act. The bill would mandate the State Department to report on US NATO allies and others using telecommunication equipment or services from companies like Huawei and ZTE in their 5G networks.
Representative Susan Wild, the Democratic sponsor of the measure, said, "We need to redouble our efforts to protect our national security and interests, help our allies take vital measures for their own security, and stand firmly in defense of fundamental rights."
The legislation would also require publicly traded companies to disclose whether they have contracted to use Huawei, ZTE, or services covered under the bill. Huawei and ZTE have not immediately commented on the matter.
Furthermore, the bill would call for a report on telecommunications vulnerabilities in US embassies abroad and instruct the US State Department to identify critical telecommunications infrastructure projects to advance US national security.
In November, the Federal Communications Commission (FCC) prohibited the approval of new telecommunications equipment from Huawei and ZTE, citing that they pose "an unacceptable risk" to US national security.
The Chinese embassy in Washington last year accused the FCC of "abus[ing] state power and maliciously attack[ing] Chinese telecom operators again without factual basis." Huawei has consistently denied any wrongdoing, asserting that the US government has "unlawfully and irrationally" targeted the company.
The US's actions against Chinese tech giants stem from concerns that Beijing could exploit them for espionage purposes. Washington has long urged its allies not to use Huawei or ZTE equipment in their 5G networks or to remove existing gear.
In 2019, Congress instructed the FCC to require US telecom carriers receiving federal subsidies to eliminate their networks' telecom equipment posing national security risks, with the assurance of reimbursement.
The FCC designated Huawei and ZTE as threats, mandating US companies to remove their equipment or lose access to an $8.3 billion government fund for purchasing new equipment. However, Congress only allocated $1.9 billion for the so-called "rip and replace" effort.
Last year, the FCC estimated that companies would need an additional $3 billion to eliminate equipment made by Chinese telecom giants Huawei and ZTE from US networks, bringing the total projected cost to $4.98 billion.
