Chinese firms, including Huawei, barred from using national security loophole in new bill

A new bipartisan bill in the Senate will require the Federal Communications Commission (FCC) to hold off on clearing business requests from companies on the commission’s national security threat list, including the Chinese company Huawei.

According to a press release issued Monday, the bill would also "prevent further integration and sales" of "Chinese state-backed or directed firms," such as Huawei and ZTE, in America "regardless of whether federal funds are involved." Under current law, U.S. telecommunications carriers are only allowed to take down equipment purchased with federal funds, creating an exploitable loophole. "Chinese state-directed companies like Huawei and ZTE pose a serious risk to our national security," Rubio said in the release. "The Chinese Communist Party subsidizes these companies and exploits loopholes in our laws to allow malicious actors to sell compromised equipment and services in the U.S.