Huawei and ZTE are two giant Chinese makers of telecommunications gear and electronics. Under US laws passed in 2019 and 2020, both the Department of Defense and the Federal Communications Commission must replace all equipment made by these companies in our telecommunications systems.
However, the Pentagon has requested a waiver each year since 2019. Defense Department officials, along with defense experts in allied countries, insist that Huawei's market presence is too entrenched, and compliance with the 2019 law would imperil our ability to carry out missions abroad.
Under the FCC's 'Rip and Replace' rules, companies complain that there is not nearly enough money under the program to cover their costs of removing China-built equipment, to be replaced by other suppliers. The cost differences between Huawei and ZTE products, compared to others on the market, are too great.
Resources and links:
Congress.gov: John McCain National Defense Authorization Act of 2019
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Pages 282-283
Bloomberg, Huawei Profit Surges 564% As It Eclipses Apple in China
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Bloomberg, Pentagon Has a Huawei Dilemma Congress Doesn’t Want to Solve
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The Economist, America’s assassination attempt on Huawei is backfiring
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The US is moving very, very slowly away from Huawei
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FCC.gov, FCC Designates Huawei and ZTE as National Security Threats
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Closing scene, Macau
