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  • Germany Poised to Ban Huawei and ZTE From 5G Networks

    Germany Poised to Ban Huawei and ZTE From 5G Networks

    Germany is poised to ban Chinese firms Huawei and ZTE from participating in its 5G networks, dealing another blow to the firms.

    The US has already banned Huawei and ZTE, and has been pressuring its allies to do the same. Intelligence agencies have long expressed concerns over the companies’ ties to Beijing and their obligation to assist China’s foreign surveillance efforts.

    According to Reuters, Germany is preparing to ban the two companies, prohibiting telecom operators from using their equipment. In addition, Germany may even require operators to remove existing equipment manufactured by Huawei and ZTE, similar to measures taken in the US.

    Interestingly, although Huawei would not publicly speculate on Germany’s actions, a spokesperson told Reuters that the company had a “very good security record.”

    Of course, that statement ignores the fact that Huawei had the ability to monitor calls on one of the largest Dutch wireless networks, even raising the possibility that it could have monitored the calls of then prime minister Jan Peter Balkenende.

  • FCC Bans Additional Equipment Sales From Chinese Firms

    FCC Bans Additional Equipment Sales From Chinese Firms

    The FCC is continuing its crackdown on Chinese telecom firms, banning equipment from Huawei, ZTE, and others.

    The FCC has been cracking down on Chinese firms that are suspected of being a threat to US national security. While all Chinese companies are required to cooperate with Beijing’s surveillance and espionage efforts, some companies are viewed as having closer ties to the Chinese government than others, making them a greater privacy and security threat.

    The FCC has already placed restrictions on Huawei equipment being used in 5G networks, but the agency is now banning a much wider array of telecom and video equipment from Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, and Dahua Technology, along with all their affiliates and subsidiaries.

    “The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” said Chairwoman Jessica Rosenworcel. “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications.”

  • Huawei and ZTE Equipment Removal Will Cost Billions More

    Huawei and ZTE Equipment Removal Will Cost Billions More

    FCC Chairwoman Jessica Rosenworcel has informed lawmakers that removing equipment from Huawei and ZTE will cost billions more than anticipated.

    The United States banned Huawei and ZTE networking and telecoms equipment over national security concerns. Both companies were deemed a threat over their ties to the Chinese government. As a result, telecom operators were tasked with removing equipment made by the two companies from their networks. It appears the cost is significantly higher than anticipated.

    According to Reuters, in a letter to Senator Maria Cantwell, head of the Committee on Commerce, Science, and Transportation, Rosenworcel outlined the massive shortfall in the available funding:

    “To fund all reasonable and supported cost estimates…, the Reimbursement Program will require $4.98 billion, reflecting a current shortfall of $3.08 billion,” Rosenworcel wrote.

    Without further funding, the FCC will allocate the original $1.9 billion according to Congress’ instructions.

    “Absent an additional appropriation, the Commission will apply the prioritization scheme Congress specified,” Rosenworcel added.

    The latest estimate appears to be slightly less than what the agency expected in February 2022, when it estimated the total cost to be $5.6 billion.

  • Ripping Out Huawei and ZTE 5G Hardware Cost Rises to $5.6 Billion

    Ripping Out Huawei and ZTE 5G Hardware Cost Rises to $5.6 Billion

    The US has banned Huawei and ZTE equipment from its 5G networks, but the cost of implementing the ban has now risen to $5.6 billion.

    According to Network World, Congress had initially set aside $1.9 billion to fund the removal of the Chinese firms’ 5G equipment. At the heart of the issue are national security concerns over the two firms’ connection to Beijing. All Chinese companies are required to cooperate with the government, including its espionage efforts. While this may be a concern in any number of industries, it’s especially a concern in an industry that controls communication and data.

    FCC Chairwoman Jessica Rosenworcel has informed Congress the removal of Huawei and ZTE will take at least $5.6 billion, a significant increase over the initial fund.

    “Last year Congress created a first-of-its kind program for the FCC to reimburse service providers for their efforts to increase the security of our nations communications networks,” said Chairwoman Rosenworcel. “We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat. While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that the U.S. will continue to lead the way on 5G security.”

  • Vodafone Idea Looks to Avoid Ericsson/Nokia 5G Duopoly

    Vodafone Idea Looks to Avoid Ericsson/Nokia 5G Duopoly

    Vodafone Idea (Vi) is looking for a third-party provider of 5G equipment in an effort to avoid an Ericsson/Nokia duopoly.

    Ericsson and Nokia are the two main 5G equipment manufacturers in the world. Huawei was once in the top three, but global sanctions have crippled the company’s ability to compete.

    Despite there being two companies to choose from, Indian telecom company Vi is eager to avoid a duopoly, and is looking to source 5G equipment from a third company, according to TelecomTalk. The company is looking at both local and international vendors.

    Despite its desire to avoid a duopoly, it’s unlikely Huawei or ZTE will be able to take advantage of the situation. The Indian government has been among those excluding Huawei from its 5G network rollout.

  • ’Huawei Loophole’ Closed, Huawei and ZTE Cut Off From All Licensing

    ’Huawei Loophole’ Closed, Huawei and ZTE Cut Off From All Licensing

    US President Joe Biden has signed the Secure Equipment Act into law, preventing Huawei and ZTE from obtaining telecom licenses.

    Huawei, ZTE, and other Chinese telecom companies have been deemed a security threat by the US government and intelligence agencies. The companies, especially Huawei, have been accused by governments around the world of serving as an avenue for Beijing to spy on organizations.

    Despite Huawei and ZTE being banned from participating in US networks, that hasn’t completely stopped the two companies. Both have applied for, and been granted, licenses that did not involve federal funds. In fact, since 2018, the Federal Communications Commission (FCC) approved more than 3,000 such licenses for Huawei alone, leading to the nickname “Huawei Loophole.”

    The Secure Equipment Act passed the Senate with unanimous support, and passed the House with only four votes against. With Biden’s signature, the legislation becomes law, closing the Huawei Loophole.

    When the Secure Equipment Act was first introduced, FCC Commissioner Brendan Carr praised the implications of the new legislation.

    “I commend Republican Whip Steve Scalise and Congresswoman Anna Eshoo for their leadership in securing America’s communications infrastructure,” Carr stated. “Their bipartisan Secure Equipment Act would close a glaring loophole that Huawei and other entities are exploiting today to place their insecure gear into our networks. I applaud their work to eliminate the threats posed by this equipment.”

  • Alibaba Future-Proofing Cloud OS, Will Support Multiple Architectures

    Alibaba Future-Proofing Cloud OS, Will Support Multiple Architectures

    Alibaba is working to make its Apsara cloud OS compatible with a variety of architectures in an effort to future-proof it.

    Alibaba started as an online marketplace, but has grown to be one of the biggest companies in the world. The company is a leader in AI, e-commerce and, increasingly, the cloud market.

    The company is working on its Apsara cloud OS, and is learning from the challenges its fellow Chinese firms have faced. Huawei, ZTE and Xiaomi have all experienced setbacks as a result of sanctions by the US government and its allies. Huawei, in particular, has struggled due to being cut off from the semiconductors it relied on for its products.

    Alibaba’s solution is to make sure Apsara can work on a variety of chip architectures, ensuring no geopolitical factors negatively impact the OS or the company’s plans. According to TechCrunch, Alibaba is building support for x86, Arm and RISC-V into Aspara.

    The addition of RISC-V is particularly interesting, as it is an open source architecture that anyone is free to use. There are no fees associated with using it, and it is beyond the reach of US sanctions. As a result, RISC-V is growing in popularity among Chinese companies, offering them a measure of security they do not have with other options.

    If RISC-V continues to gain widespread use, other companies will likely be forced to support it too.

  • Huawei and ZTE Excluded From India’s 5G Trials

    Huawei and ZTE Excluded From India’s 5G Trials

    Huawei and ZTE are in an all-too-familiar situation, both of them being excluded from a country’s 5G trials.

    Huawei and ZTE have both been under international scrutiny over their ties to Beijing. Governments and intelligence agencies around the world have warned that the companies, especially Huawei, pose a threat to national security and could be an avenue for the Chinese government to spy on others.

    The US, in particular, has been aggressive in its dealings with both companies. The firms are banned from US networks, and officials have pressured allies to do the same — often with great success.

    Although India has not officially banned any company from its wireless networks, BBC News is reporting Huawei and ZTE were not included in 5G trials involving a dozen other companies. Despite not implementing an outright ban, Delhi has indicated it would focus more on security and “trusted” vendors for telecom equipment rollouts.

    India’s stand is another blow to the Chinese firms, and illustrates why Huawei is increasingly looking to diversify outside the telecoms industry.

  • Oracle’s TikTok Purchase On Hold Indefinitely

    Oracle’s TikTok Purchase On Hold Indefinitely

    Oracle’s bid to purchase TikTok, in conjunction with Walmart, is on hold indefinitely as a result of the change in administration.

    The Trump administration aggressively went after a number of Chinese companies, including Huawei, ZTE, Xiaomi and TikTok, accusing them of being a threat to national security. The administration instituted bans against the first three, and was in the process of banning TikTok unless it could arrange for a US buyer to take over its operations.

    Oracle emerged as the winning candidate, along with help from Walmart, but the deal got caught up in red tape and disputesover how much control Oracle would actually have. Ultimately, even TikTok was left wondering about its fate, with a judge effectively granting it a stay of execution in the form a temporary injunction against the ban The judge also questioned whether the administration had the authority to ban the app in the first place.

    The Biden administration is currently reviewing the previous administration’s actions regarding various Chinese companies, and that has put the Oracle/TikTok deal in limbo.

    According to The Wall Street Journal, the Biden administration has asked to a delay an appeal against the injunction while it reviews the situation to see if the Trump administration’s actions were warranted.

    Needless to say, TikTok would no doubt prefer to remain independent. As a result, if there is a chance the current administration will abandon efforts to ban the app unless its purchased by a US company, there’s no incentive for talks to continue until the Biden administration reaches a conclusion.

  • Xiaomi Sues US Government In Effort to Overturn Ban

    Xiaomi Sues US Government In Effort to Overturn Ban

    Xiaomi is suing the US Treasury Department and the Department of Defense in an effort to overturn a Trump administration ban.

    Xiaomi, along with Huawei and ZTE, were banned by the Trump administration over national security concerns. Xiaomi was accused of having close ties with the People’s Liberation Army.

    The company is now challenging the ban, according to Bloomberg, suing the US Treasury and Defense departments.

    “Xiaomi faces imminent, severe, and irreparable harm if the Designation remains in place and the restrictions take effect,” the company said in its court filing, naming Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants.

    It remains to be seen what action the Biden administration will take against Chinese firms, and whether it will uphold past action. It’s clear, however, that Xiaomi is testing the waters to see if the the change of administration will result in a change of policy.

  • On His Way Out, Ajit Pai Warns of China’s Threats to Telecoms

    On His Way Out, Ajit Pai Warns of China’s Threats to Telecoms

    Ajit Pai has stepped down as Federal Communications Commission Chairman (FCC), but he had some parting words of warning regarding China.

    For the last few years, the US and China have been engaged in a devastating trade war. US officials have also targeted a number of Chinese companies over cybersecurity and national security concerns.

    In an interview with Reuters, Pai warned of “injection of malware into networks here in the United States or around the world. There are a number of bad things that can happen when insecure equipment is used to handle sensitive information.”

    Those concerns led the Trump administration to ban Huawei and ZTE, as well as take action against China Telecom. US officials pressured allies to take similar action, many of whom did. It remains to be seen if the Biden administration will continue to restrict Chinese telecom firms, but Pai is warning against taking Beijing lightly in this arena.

    “The Chinese Communist Party has a very determined world view. They want to dominate this space and exert their will — even beyond their own borders,” Pai said Tuesday. “That is a serious threat not just to internet freedom but to national security for us and for many of our allies.”

  • FCC Upholds ZTE’s ‘National Security Threat’ Status

    FCC Upholds ZTE’s ‘National Security Threat’ Status

    The Federal Communications Commission has denied ZTE’s request to reconsider the decision to label it a national security threat.

    ZTE, along with Huawei, has been labeled a threat to national security over security and espionage concerns. ZTE and Huawei are believed to open the door for Beijing’s spying efforts, through their telecom equipment.

    “We cannot treat Huawei and ZTE as anything less than a threat to our collective security,” FCC Commissioner Brendan Carr stated when the FCC initially labeled the two companies. As a result of the decision, companies are unable to use federal funds to buy, maintain or support equipment from ZTE or Huawei, providing a major incentive to use equipment from other companies.

    There appears to be no relief in sight for ZTE, as the FCC has upheld its initial decision after the its Public Safety and Homeland Security Bureau found no sound basis to reconsider.

    “With today’s order, we are taking another important step in our ongoing efforts to protect U.S. communications networks from security risks,” said FCC Chairman Ajit Pai. “At the next Open Meeting on December 10, the Commission will vote on rules to implement the Secure and Trusted Communications Networks Reimbursement program to help carriers remove and replace untrusted equipment from their networks, months before the statutory deadline. Now it is more vital than ever that Congress appropriate funds so that our communications networks are protected from vendors that threaten our national security.”

  • TikTok Gets a Reprieve As Judge Blocks Ban

    TikTok Gets a Reprieve As Judge Blocks Ban

    A federal judge has blocked the Trump administration’s ban on TikTok, at least temporarily, giving the social media platform a reprieve.

    The Trump administration has been trying to ban TikTok, calling the platform a security and privacy threat. The move is widely seen as part of the administration’s trade war with China and its broader attempt to isolate Chinese companies, such as TikTok, WeChat, Huawei and ZTE.

    One of the conditions that could have prevented a ban was if TikTok’s parent, ByteDance, agreed to sell TikTok’s US operations to an American company. An initial deal was struck, with Oracle slated to take a 20% ownership stake. While the Trump administration signed off on the deal, the Chinese government did not, leaving a ban on the table.

    Now, according to Forbes, “Pennsylvania Judge Wendy Beetlestone blocked that order Friday, issuing a preliminary injunction while the court considers a lawsuit brought by several TikTok content creators.” Judge Beetlestone questioned whether Trump has the authority to unilaterally ban TikTok.

    The eventual outcome of the TikTok drama could have far-reaching implications for internet companies all over the world, with many experts warning about the nationalization of the internet.

  • Trade War Escalates As China Sanctions Multiple US Companies

    Trade War Escalates As China Sanctions Multiple US Companies

    The US-China trade war has escalated as China sanctions multiple companies in retaliation for weapons sales to Taiwan.

    The US and China have been locked in a trade war, with each side taking shots at the other. The US has banned ZTE and Huawei, and urged its allies to do the same. The administration altered the Entity List and Foreign Direct Product Rule to cut Huawei from any chip suppliers that use US technology, including TSCM, one of its prime suppliers. The Trump administration is also pushing for a ban of WeChat and TikTok.

    In response, China passed new regulations limiting the technologies that could be exported. In particular, the new regulations target the algorithm TikTok uses, thereby putting in jeopardy any deal that might avert a US ban by selling TikTok’s US operations to another company.

    Now China has gone even further, sanctioning Lockheed Martin, Boeing Defense, Space & Security (BDS) and Raytheon over weapons sales to Taiwan.

    “As China pointed out on multiple occasions, the U.S. arms sales to Taiwan severely violate the one-China principle and the three China-U.S. joint communiqués, and seriously undermine China’s sovereignty and security interests,” said Foreign Ministry Spokesperson Zhao Lijian in a press conference. “China firmly opposes and strongly condemns it.

    “To uphold national interests, China decides to take necessary measures to sanction U.S. companies involved in the arms sales to Taiwan including Lockheed Martin, Boeing Defense, Space & Security (BDS) and Raytheon, as well as the U.S. individuals and entities who played an egregious role in the process.”

    It’s unclear what long-term impact the sanction’s will have on the US companies. In the short term, the news caused a sharp sell-off of those specific stocks, dragging down industrial stocks in general Monday.

  • Sweden Latest Country to Ban Huawei and ZTE

    Sweden Latest Country to Ban Huawei and ZTE

    Sweden has joined the list of countries that are banning Chinese firms Huawei and ZTE from participating in the country’s networks.

    Huawei was one of the world’s largest provider of telecommunications equipment, with carriers all over the globe relying on its technology. In recent years, however, there have been growing concerns that Huawei and ZTE represent a significant risk to other countries’ national security. Huawei has often been accused of being an extension of Beijing’s intelligence apparatus, a claim it has vehemently denied.

    The US, in particular, has waged a successful campaign to isolate Huawei, pressuring its allies to ban the firm from their networks. The UK, Australia and New Zealand have all implemented bans.

    Sweden is now the latest country to ban the two firms, citing the threat China poses. According to reports, wireless carriers bidding on 5G spectrum are prohibited from using the two companies. Even existing infrastructure must have any Huawei or ZTE gear removed if the infrastructure will be used for 5G.

    “China is one of the biggest threats to Sweden,” said Klas Friberg, the head of SAPO, Sweden’s domestic security service. “The Chinese state is conducting cyber espionage to promote its own economic development and develop its military capabilities. This is done through extensive intelligence gathering and theft of technology, research and development. This is what we must consider when building the 5G network of the future.”

    The move is another blow to Huawei, already reeling from existing bans and sanction, but will be a big win for Nokia and Ericsson.

  • China Passes Export Control Laws for Sensitive Export

    China Passes Export Control Laws for Sensitive Export

    China has fired the latest shot in the ongoing trade war with the US, passing legislation to restrict exports of sensitive technology.

    The US has been working to isolate Chinese firms it deems as a threat to privacy and security. Huawei and ZTE have both been banned, with US officials pressuring allies to do the same. The US has also used export controls to cut Huawei off from its chipmaking suppliers, such as TSMC. The Trump administration also threatened to ban TikTok, unless the social media app was sold to a non-Chinese company.

    In retaliation, China threatened to block the sale of specific technologies, including the algorithm that is at the heart of how TikTok functions. Now, according to Bloomberg, the National People’s Congress Standing Committee has passed a law prohibiting the export of sensitive technology, including by companies that have foreign investors. The law goes into effect on December 1.

    It remains to be seen how widespread the impact will be, as there is very little information available about the law’s reach. We will continue to monitor and update as the story develops.

  • Administration May Restrict Chinese Firm SMIC

    Administration May Restrict Chinese Firm SMIC

    The Trump administration is considering imposing export restrictions on China’s biggest chip maker, SMIC.

    The US has been increasingly targeting Chinese companies, including Huawei, ZTE, TikTok and WeChat, citing national security concerns. Huawei and ZTE have been banned in the US, with TikTok and WeChat facing imminent bans.

    As the trade war heats up, it appears US officials are not slowing down. SMIC is China’s biggest chipmaker, and it appears it is coming under increased scrutiny. According to CNBC, the Department of Defense is analyzing whether it should be placed on the Entity List, a step that would make further restrictions much easier.

    “DoD is currently working with the interagency in assessing available information to determine if SMIC’s actions warrant adding them to the Department of Commerce’s Entity List,” said a DoD spokesperson. “Such an action would ensure that all exports to SMIC would undergo a more comprehensive review.”

    Should the US proceed with this step, it remains to be seen what retaliatory measures the Chinese government may take.

  • China Threatens Apple Products If WeChat Is Banned

    China Threatens Apple Products If WeChat Is Banned

    China has officially said the Chinese would have no reason to keep Apple products, including the iPhone, if WeChat is banned.

    The Trump administration has been putting increasing pressure on Chinese firms, including Huawei, ZTE, TikTok and WeChat. All four companies have been banned, with TikTok and WeChat’s ban going into effect on September 15. TikTok has been desperately trying to find a buyer before the ban, in order to keep its US, Australia and New Zealand operations going. There has been no such discussions regarding WeChat.

    The impending ban has been a major concern for many US tech companies. Apple is especially vulnerable, as it relies on China for a fifth of its sales. WeChat is so important in China that it is used for everything, including messaging, purchasing, paying bills, social media and more. A phone without WeChat would be viewed as crippled in Chinese society. The Trump administration has tried to reassure companies they could still do business with WeChat within China, but the app is very popular among Chinese nationals abroad as a way to stay in contact with family and friends.

    In addition to the fallout with consumers, there are concerns over manufacturing. Apple relies on China for a large part of its manufacturing, making it vulnerable to retaliation from the Chinese government.

    It remains to be seen if some kind of deal will be reached to avoid a worst-case scenario.

  • US May Ban Contractors From Using Chinese Equipment

    US May Ban Contractors From Using Chinese Equipment

    The US is ramping up its pressure on Chinese firms, with plans to ban any government contractor from using equipment from five companies.

    Huawei, Hikvision, Hytera Communications Corp, ZTE and Dahua are the five companies that are expected targets of the new regulations. As Reuters points out, the five companies cross a variety of tech sectors. Huawei and ZTE are well-known smartphone and wireless equipment makers. Hikvision and Dahua are top camera and surveillance equipment vendors, and Hytera Communications Corp makes two-way radios.

    If this regulation should pass, it will have far-reaching impacts on the tech industry and government contractors. Each contractor will have to prove they are not using any equipment, goods or services from any of the blacklisted companies, not to mention the cost incurred in replacing any equipment they were using.

    This is just the latest escalation in the battle between the US and Chinese companies, which officials accuse of being a national security risk. This move will likely have an impact on US/China relations, and could well lead to retaliation on the part of Beijing.

  • FCC Labels Huawei and ZTE Threat to National Security

    FCC Labels Huawei and ZTE Threat to National Security

    The FCC has formally declared both Huawei and ZTE as threats to national security.

    The US has been waging a campaign against Huawei and ZTE for some time, citing concerns over their close ties to the Chinese government. The US has consistently maintained the companies, especially Huawei, serve as a conduit for Beijing to spy on governments and organizations around the world.

    As a result, US officials have taken steps to ban both companies from participating in US networks, and have pressured allies to do the same. Now the FCC is ratcheting up the pressure by labeling both companies as threats to national security.

    “We cannot treat Huawei and ZTE as anything less than a threat to our collective security,” Commissioner Carr stated. “Communist China intends to surveil persons within our borders and engage in large-scale, industrial espionage. Nothing short of prohibiting subsidized Huawei and ZTE gear from our networks could address this serious national security threat. After all, Chinese law does not meaningfully restrain the Communist regime given its authoritarian nature.

    “America has turned the page on the weak and timid approach to Communist China of the past. We are now showing the strength needed to address Communist China’s threats. And our efforts will not stop here. The FCC will continue to take whatever steps are necessary to secure America’s communications networks from bad actors that would do us harm,” Commissioner Carr added.

    The designation means that companies cannot use funds from the FCC’s Universal Service Fund to purchase, maintain or support equipment from either company.

  • FCC Goes After Telecoms With Ties to China

    FCC Goes After Telecoms With Ties to China

    The Federal Communications Commission (FCC) has thrown down the gauntlet, going after telecom companies that have strong ties to Beijing.

    The U.S. has engaged in some very public battles with Chinese firms, including Huawei and ZTE, citing issues of national security. In its latest move, the FCC has “issued Show Cause Orders to four telecom companies with ties to the communist regime in China.” A Show Cause Order gives the companies 30 days to make the case as to why their authority to operate within the U.S. should not be revoked. The companies in question are ComNet, China Telecom Americas, China Unicom Americas and Pacific Networks.

    “Over the past few weeks, Americans have learned that they no longer need to page through dusty foreign policy magazines to understand the consequences that flow from communist China’s brutal crackdown on freedom and free speech,” writes Commissioner Brendan Carr. “The communist party’s silencing of critics and its disappearance of hero doctors and citizen journalists exacerbated the global spread of Covid-19. Americans are now experiencing the consequences of those oppressive actions in their own lives—whether in the loss of their jobs or their kids not being able to attend school due to Covid-19.

    “Since communist China is willing to disappear its own people to advance the regime’s geopolitical agenda, it is appropriate for the FCC to closely scrutinize telecom carriers with ties to that regime. This is a prudent step to ensure the security of America’s telecom networks. In the Show Cause orders issued today, we give carriers 30 days to explain why the FCC should not initiate proceedings to revoke their authority. They now have the opportunity to provide evidence showing that they are not subject to the exploitation, influence, and control of the Chinese government such that we should not look to revoke their authority to operate in the U.S. I look forward to reviewing the record that develops and reaching a final decision on those key issues.”

    It’s unknown what impact the FCC’s actions will have on trade relations with China, although Beijing has vowed retaliation in the past when action has been threatened against one of its companies.