The US Senate has passed new policies under the Secure and Trusted Telecommunications Networks Act as they aim to clamp down further on Huawei.
Under the Secure and Trusted Telecommunications Networks Act, buying of telecom equipment from the two Chinese manufactures – Huawei and ZTE is prohibited. The Senate voted the bill yesterday in unison, but for it to become a law, it has to be signed off by US President, Donald Trump.
The bill also seeks to set aside $1 Billion, which will help smaller telcos located in rural America to “rip and replace” existing equipment from the two network equipment suppliers.
The move is seen as a way to grant security across communications networks throughout the United States.
Over the past years, the US has been battling with the Huawei, in particular, alleging that its telco equipment can be used for espionage by the Chinese government. An allegation Huawei has continually denied.
Despite the harsh relationship between the two, the US Department of Commerce has offered Huawei a reprieve from the ban several times to continue supporting its telco customers majorly located in rural America as they seek alternative ways.