China is being pushed out of US telecoms

April 18, 2018

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.

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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.

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