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  • Chris Bratton - Tech Journalist

Joe Biden Puts a stop to the Chinese telecommunication networks

The U.S. President Joe Biden seems quite strict regarding tech and digital regulations as we’ve seen a tighter move in the sector than the previous Administration. The telecommunication network is getting a new set of rules on which companies can function and serve the country. Of course, it is one of the biggest sources of funding when it comes to tax and serving a huge customer base, and many companies are trying to achieve the same thing, which is being the best in the market by having the biggest customer base possible.

In recent terms, ZTE and Huawei received a further warning on stopping their telecommunication in the U.S. According to The Secure Equipment Act, the Federal Communications Commission (FCC) will no longer review and accept the application of newer infrastructure that doesn’t belong to the U.S. directly. The Communications ACT of 1934, as amended (Communications Act), which is “codified a title 47 of the U.S. Code”, defines sets of regulations on the telecommunications and media industries. It also includes governance of the FCC as an independent federal agency. Though the rules have been updated with the latest terms, consideration on privacy received a major revamp.

Legislation is signed by the U.S. president that stops companies at their doorstep when asked for permission to conduct business. The overseas telecommunication network systems can become a breach of security on the country’s residents. And to stop that from happening, a vote took place in the House of Representatives. Among all the polls taken in, 420 favoured the sign and only four against it. Democrat and Republican senators granted the vote altogether. From now on, if any company seems like a threat to privacy, they will not be permitted to conduct business. In 2019, a new law was passed, and the FCC identified five Chinese companies. These companies are now titled as a threat to national security. Alongside ZTE and Huawei that we already mentioned, Hytera Communications Corp, Zhejiang Dahua Technology Co and Hangzhou Hikvision Digital Technology Co are barred from setting up communications equipment.

According to the FCC Commissioner Brendan Carr, more than Huawei 3,000 applications have been approved. Though Huawei is continuously receiving a lot of heat from the European Union and the U.S., they are still trying to have whatever business possible in these areas as customer base, and profit margin is that high to be fighting for. There are many countries where overseas companies similar to the telecommunications network business are taking place, and regulations are kept under the radar. But not anymore.

On the other hand, China takes serious measures on companies that belong to China, overseas companies too. We’ve seen large tech firms losing business in one of the biggest economies that China holds. It’s a loss of billions in revenue. And we guess in terms of fighting, and the U.S. is taking the measures to show their dominance on the market on worldwide business.

Due to national security standards uprise, Chinese telecommunication network businesses can no longer function in the U.S. The FCC proposed they will revoke licenses already granted to some companies. We don’t know what kind of actions will come up regarding that, but the fight will go on for an extended period, as we can assume. Unless these countries with leading companies and governments come together and sit in a room, there is no hope. A virtual meeting will take place between President Joe Biden and Chinese leader Xi Jinping. The conference is thought to of to discuss the ongoings and further solve the issues. If U.S. companies can not do good business in China, then there is no way the U.S. will allow Chinese giants to function on their soil.


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