The Federal Communication Commission (FCC) approved earlier this week to block the use of the $ 8.5 billion Universal Service Fund (USF) fund by any telecommunications company to buy equipment from Huawei and ZTE. And to confirm the advanced news this Friday by the Wall Street Journal, Huawei is expected to file a lawsuit against the US communications regulator next week.
The decision comes after Ajit Pai submitted the proposal in late October this year. According to the FCC president, certain Chinese suppliers pose "a risk to the national security of the country." "And there are growing reasons to believe that Chinese companies Huawei and ZTE pose an unacceptable risk to US national security," he said in an FCC blog post.
FCC approves blocking use of 8.5 billion fund to buy Huawei and ZTE equipment
But according to a statement quoted by the newspaper, the Chinese manufacturer finds this decision illegal and based on selective information and innuendo and misguided assumptions. Huawei further argues that this decision will have a negative impact on Americans' connectivity in rural and poorer areas of the United States.
According to the FCC, the block will take effect as soon as the order is published in the Official Gazette of the United States Federal Government. The ruling could be related to the extension of the term of application of the economic blockade imposed on Huawei by the US Government after Huawei was blacklisted in May in the United States.