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Businesses China The Almighty Buck

FCC Bars Huawei, ZTE From Billions in Federal Subsidies (cnet.com) 27

Posted by msmash from the tussle-continues dept.
The US Federal Communications Commission on Friday voted to bar use of its $8.5 billion a year Universal Service Fund to purchase equipment and services from Huawei and ZTE. The government fund is used by multiple programs to subsidize US broadband deployment and services. From a report: In a unanimous vote during its November open meeting, the FCC approved an order that blocks the use of USF funds to purchase equipment and services from companies that pose a national security threat. The order also establishes a process for barring more companies in the future. So far, just Huawei and ZTE are on the list. "Given the threats posed by Huawei and ZTE to America's security and our 5G future, this FCC will not sit idly by and hope for the best," said FCC Chairman Ajit Pai in a statement Friday.
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FCC Bars Huawei, ZTE From Billions in Federal Subsidies More

FCC Bars Huawei, ZTE From Billions in Federal Subsidies

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  • The simple way to push this is to simply state that no federal contracts will be awarded to any companies running with network equipment from the following companies (....).
    However, that really does not solve the issue. Instead, it should state that any of those companies that are outsourcing with access to production networks, or are doing work on production code, will likewise not receive federal contracts. This is just as much a risk as is using Chinese based equipment.
    • It doesn't even matter much, Huawei alone is worth $100 billion, threatening to withhold a few billion unless Huawei starts an investigation into Biden... I mean, just withhold it because reasons, won't have much if any effect on them, it'll just make Huawei even more determined to wean itself off US tech and US vendors, to the long-term detriment of US businesses.
  • Hey, a win for the Federal Govt....getting one right for a change.

  • I'm with the FCC here (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Friday November 22, 2019 @03:40PM (#59444102)
    why are we giving billions in subsidies to foreign companies? Sanders (and I think Warren too) has a really good "Buy American" proposal.
    • If you pay the phone company to build out the network, they need equipment. If the best price is from China then they buy from China. Telling the taxpayer you need twice as much in taxes because Buy America costs more doesn't play well with voters.
    • Same reason we give billions in subsidies to Israel and Europe. By the way, your "buy American" idea is nativist, xenophobic and jingoist, but you knew that already.

      • If it were any other country besides China, you might be right. But it is China. Why are we effectively going to force US customers to subsidize American telcos who are buying Chinese equipment that is priced to eliminate all foreign (read: non-Chinese) competition and that represents a major security risk to our networks?

        It doesn't have to be American equipment, but it is important for Americans to think twice before continuing to allow China to squeeze competitors.

        • HURR DURR GO USA MORANS Lolllllzzzz

          Get this xenophobia out of here. You already had the Chinese exclusion act and it looks like you're ready to do it again.

          • That's a stupid response. Do you want Chinese corporations to eliminate all competition, forcing everyone to buy 5G gear from China or nowhere else? Is that REALLY what you want? Constantly choosing the lowest bidder when the lowest bidder is owned/controlled by the PRC is not always a good idea.

  • It makes no sense for US to subsidize the state backed companies of CCP. CCP is on territorial grab like that that preceded WWII (South China Sea grab now parallels 1930s Manchuria) with a tremendous arms build up to drive a campaign of intimidation and subversion. No more free $$$$ for CCP.
  • wide to go. I do not understand why the US government subsidizes 1000s of foreign firms and most all countries.

    just my 2 cents ;)
    • There is no good reason to subsidize local firms either. If they don't know how to run a competitive company they will be replaced by companies that do.

    • Re: (Score:2)

      by Chromal ( 56550 )
      Probably because it's cheaper, maybe also because (in some instances) it's a better product. Isn't one of the points of even having a global system of trade simply so that you can get the best stuff at the best price in a wider diverse market? I feel as though the people behind this in power are failing to make their point. The branding on the product hardly matters when it or important parts of it are being manufactured in China or elsewhere. And what in the world is the point of this exercise, I've yet t
      • Rumor has it, that if China performs an investigation on a newsworthy name this blockage will be unblocked.
    • I don't think the US government is subsidising 1000s of foreign firms (albeit not directly). My understanding is that what it is subsidising is US broadband deployment and services. It is those subsidised programs that do the purchasing (possibly) of equipment and services from foreign firms.
  • Once again early commenters are letting their keyboards race ahead of their brains. No one was subsidizing Huawei and ZTE. RTFOP. The fund subsidizes US broadband rollout; the fund wasn't subsidizing the companies, it was using their equipment to subsidize rollout.

    Full disclosure, I like this decision, but is has nothing to do with non-existing US subsidies of Huawei and ZTE. Now, Chinese subsidizing on the other hand....

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