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U.S. Attorney General William Barr declared that China's Huawei Technology Co., Ltd. and ZTE (000063. SZ) were "untrustworthy," labeling the two companies as security threats, and supporting a proposal to ban U.S. rural wireless operators from using government funds to buy equipment and services from both.
The U.S. Federal Communications Commission (FCC) will vote on November 22 and recommend that operators remove or replace Huawei and ZTE equipment. "Their past performance and the actions of the Chinese government show that Huawei and ZTE cannot be trusted," Barr said in a letter to the FCC. The letter was made public on Thursday.
"We should not signal that Huawei and ZTE do not pose a collective security risk, because their actions show that they are such a company," he added
Huawei and ZTE did not comment.
Barr pointed out that federal prosecutors accused Huawei of violating the US business ban on Iran, bank fraud, judicial sabotage and stealing trade secrets. ZTE pleaded guilty in 2017 to illegally shipping about $32 million in US goods to Iran.
Ajit Pai, chairman of the Federal Communications Commission (FCC), said the Commission "cannot ignore the risk that the Chinese government will seek to exploit cyber vulnerabilities for espionage, the insertion of malware and viruses, and other damage to our critical communications networks.".

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