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China is being pushed out of US telecoms

The Federal Communications Commission is moving forward with a plan intended to stop carriers from using Chinese hardware.

The news:  Bloomberg reports that the FCC has voted unanimously to bar telcos from using US federal subsidies to buy technology deemed a national security risk.

Striking out at China: The move is aimed at Chinese firms Huawei and ZTE. Plus, on Monday, the US banned ZTE from buying technology from American firms.

More of the same: In recent months, America has made a series of moves to slow China’s tech growth, such as blocking Broadcom’s bid to acquire Qualcomm.

Why it matters: China and the US both see tech as perhaps their most important asset. This, plus tit-for-tat tariffs and IP theft by China, is escalating a tech showdown.

But: The anticipated trade war that all this foreshadows could hurt US companies.

What next: The FCC rules will go to a second vote before they become binding.

Deep Dive

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Corruption is sending shock waves through China’s chipmaking industry

The arrests of several top semiconductor fund executives could force the government to rethink how it invests in the sector.

Inside the software that will become the next battle front in US-China chip war

The US has moved to restrict export of EDA software. What is it, and how will the move affect China?

Hackers linked to China have been targeting human rights groups for years

In a new report shared exclusively with MIT Technology Review, researchers expose a cyber-espionage campaign on “a tight budget” that proves simple can still be effective.

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Illustration by Rose Wong

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