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DOD Bars Sales of Huawei, ZTE Phones on Military Bases Amid Report of Coming Executive Order

DOD said Wednesday it’s barring stores on U.S. military bases from selling phones made by Chinese companies Huawei and ZTE, citing ongoing national security concerns about Chinese telecom equipment manufacturers. The White House and National Security Council meanwhile didn’t comment…

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on a report that President Donald Trump’s administration is considering an executive order that would further restrict some Chinese telecom equipment manufacturers’ ability to sell their products in the U.S. Huawei and ZTE devices “may pose an unacceptable risk to [the department's] personnel, information and mission," a Pentagon spokesman said in an email. "In light of this information, it was not prudent for the Department's exchanges to continue selling them to DoD personnel.” Defense can’t dictate that troops won't buy Huawei or ZTE phones from other stores but they “should be mindful of the security risks posed by the use” of the devices, the spokesman said. The House Intelligence Committee warned beginning in 2012 about the companies’ ties to the Chinese government. The committee’s 2012 report recommended the U.S. “view with suspicion” attempts by the companies to continue making inroads into the U.S. market (see 1210100053 or 1210100091). The White House's pending executive order could bar companies doing business with the federal government from using network or telecom equipment made by companies the U.S. deems a national security risk, The Wall Street Journal reported. "While we have no comment on individual actions, protecting critical infrastructure, including the supply chains associated with such infrastructure, is a critical part of protecting America’s national security and public safety," a White House spokeswoman emailed. Communications industry lawyers previously told us they anticipated executive actions from the White House on national security issues involving Chinese telecom equipment manufacturers and to address pressure for modifications of the "Team Telecom" reviews of foreign takeovers of U.S. communications assets (see 1804250045). The FCC approved 5-0 last month an NPRM that proposes to bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain (see 1804170038). FCC Chairman Ajit Pai initiated the NPRM amid pressure from Hill lawmakers about reports Huawei was set to begin selling its consumer products in the U.S. as soon as this year “with little or no modifications" to address privacy and cybersecurity concerns (see 1803230063). Huawei meets “the highest standards of security, privacy and engineering in every country,” including the U.S., the company said in a statement. “We remain committed to openness and transparency in everything we do and want to be clear that no government has ever asked us to compromise the security or integrity of any of our networks or devices.” ZTE didn’t comment.