The whole thing between the US and Chinese companies Huawei and ZTE began in May last year. The US President had at the time signed an executive order that resulted in the suspension of business between US companies with the two Chinese companies. A year later, the US Federal Communication Commission (FCC) formally declares the two companies as security threats to the country.
FCC chairman Ajit Pai says the decision is the result of “overwhelming weight of evidence”. The argument here hasn’t changed much since last year; both companies can be compelled by the Chinese government to provide “technical support and assistance”. This can be interpreted as having the two companies spy for the government, a claim that both companies have denied.
The designation takes immediate effect, which but it remains to be seen if it actually changes the current situation in any way. On the US telco side of things, companies are already not allowed to buy equipment from from the two companies. The change here may be going a step further, replacing equipment from the two companies that are currently in use.
It’s much the same story for the consumer front. Huawei is still blocked from having Google Mobile Services on its phones. And it’s not like the situation can get any worse.