The US House of Representatives is set to vote on a new defense bill allocating $3 billion to support American telecommunications companies in removing and replacing equipment manufactured by Chinese firms Huawei and ZTE.
This funding, drawn from the National Defense Authorization Act’s 2025 budget, aims to mitigate national security risks as part of the ongoing US crackdown on Chinese technology companies.
Addressing National Security Concerns
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The 1,800-page proposal, shared over the weekend, includes additional measures targeting China-related issues alongside the telecom equipment initiative.
Bridging the Funding Gap
The $3 billion allocation is expected to cover a shortfall from an earlier $1.9 billion plan to eliminate insecure telecom equipment. The Federal Communications Commission (FCC) estimates the total cost of replacing this equipment at $4.98 billion.
FCC Chair Jessica Rosenworcel emphasized the urgency of addressing the funding gap, warning that the shortfall jeopardizes both national security and rural network connectivity. She noted that in some rural areas, removing compromised equipment could shut down critical networks, impacting essential services like emergency calls.
A Broader Push Against Huawei and ZTE
The effort to remove Chinese telecom gear stems from a 2019 congressional mandate requiring US networks to purge such equipment. The United States is not alone in this initiative. In 2022, the UK announced plans to eliminate Huawei technology from its 5G public networks by the end of 2027.
The UK government cited concerns that US sanctions restricting Huawei’s access to advanced chips might impair the company’s ability to maintain its infrastructure. However, cybersecurity risks are widely believed to be a significant factor in the decision.
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