The U.S. House of Representatives will vote next week on an annual defense bill that includes a roughly $3 billion budget allocation to remove Chinese telecommunications equipment from American wireless networks. The U.S. considers the Chinese equipment to be a threat to national security.
THE PURPOSE IS TO SECURE NATIONAL SECURITY
The 1,800-page bill also includes other provisions aimed at China, including a request for a report on China’s efforts to evade U.S. national security regulations and an intelligence assessment of the current status of China’s biotechnology capabilities.
The US Federal Communications Commission (FCC) estimates that the cost of removing equipment from Chinese telecom companies such as Huawei and ZTE would reach $4.98 billion. However, Congress previously allocated only $1.9 billion for this "rip and replace" program. The new bill aims to close the $3.08 billion budget gap that the FCC stated. Huawei and ZTE are among the leading companies for 5G infrastructure.
126 OPERATORS AFFECTED
The US has long viewed Huawei and other Chinese telecom companies as a security risk and has called on its allies to remove this equipment from their networks. In 2019, the FCC made it mandatory for telecom operators receiving federal subsidies to remove Chinese equipment from their networks. It is stated that 126 operators were affected under the FCC's "rip and replace" program.