US legislation creating difficulties for Huawei, and ZTE in Europe


The US legislation seems to create difficulties for Huawei and ZTE in its European market giving the company a big blow. More cosponsors have signed on a recently introduced Senate bill against Chinese tech makers.

Ted Lieu, who is a democratic representative of California, and Brad Schneider from Illinois show their agreement on the recent senatorial, says SCMP report. Now, both have joined the Transatlantic Telecommunications Security Act alongside 30 members.

It provides the US International Development Finance Corporation (DFC) special authority to review projects from central and eastern Europe including regions like Austria, Greece, Ukraine, and Moldova. In addition, the DFC also interferes with the project of respective agencies and provides them support.

The bill prologues “the United States has national security and economic interests in assisting central and eastern European countries. It’ll work to improve the security of their communications networks by reducing dependence on covered telecommunications equipment or services that are often offered with voracious financial inducements, and replacing them with secure broadcasting equipment or services.”

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How Huawei is Affected:

Let summarise, how it can affect Huawei. The US has implemented a Rip and Replace policy, under which it’s blocking the Europen operation to stop business with Chinese firms Huawei, ZTE, and three others. The legislation explains Chinese 5G equipment as a threat to the nation’s security as instructed their operations to replace them.

Well, the US administration urges its allies to ban Huawei and ZTE infrastructure. But it didn’t get support because the Chinese firms offer the best quality equipment at a relatively lower price. Therefore, other counties with weak financial conditions denied using products from other suppliers.

Now, US legislation has brought this Transatlantic Telecommunication Security Act that’ll offer investment for European partners. Besides, the latest US mission especially targets Huawei and its European market.

(Via- HuaweiCentral)

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