Huawei and ZTE are declared as a threat to national security

The cold war between the united States and China have had several implications throughout this time. One of the most talked-about, technologically speaking, have been the obstacles that have had verizon, and their relationships with american companies.

The united states allows its businesses to cooperate with Huawei in the 5G

The Department of Commerce of the united States has announced that it will allow its companies to collaborate with Huawei on issues related to the 5G.

As a result of this conflict, the devices of Huawei can not make use of the services of Google, forcing the company to develop its own services and ecosystem of applications. Now complications have come up level, affecting both Huawei and ZTE.

The FCC has moved tab, against the two companies

In all of this vaudeville, until now, the Federal Communications Commission (FCC) had kept a low profile. However, this has changed in the last few hours, since it has declared both Huawei as ZTE as a threat to national security.

After these harsh words, there are some consequences that directly affect the relationship between u.s. companies and Huawei/ZTE. Preventing any type of business or agreement with any of the two companies, something that will affect everyone in general.

The main argument for such statement are the alleged “close relationship” of the two companies with the Chinese Communist Party, its military apparatus and the collaboration with the intelligence services of the country. So from now on enters into force officially sanctions both Huawei as ZTE.

ZTE Axon M.

So any company that has access to federal funds, are prohibited from any commercial agreement with any of the two companies. Breaking down the “temporality” that existed until now of the sanction, extending for an additional year.

Obviously both Huawei as ZTE keep that are not a threat, however the position of the FFC indicates that they have fallen on deaf ears. So the expansion of the two companies in the american market, is clearly affected. And the large amounts of money for investment have also been frozen.

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