American cellular businesses will no longer be able to spend federal money on equipment from the two Chinese companies.
The Federal Communications Commission on Tuesday designated the Chinese telecommunications firms Huawei and ZTE as national security threats, cutting them off from billions of dollars in federal broadband subsidies.
The agency voted unanimously last year to bar telecommunications manufacturers it deemed to be threats from receiving money meant to expand internet access to underserved areas, including rural America. The announcement on Tuesday was the final step in blocking Huawei and ZTE from the funds.
The Trump administration has been applying pressure on Chinese companies over security concerns. American officials have pushed countries around the world not to use Huawei’s networking equipment in their next-generation, or 5G, wireless networks.
On Monday, the United States blocked the export of high-tech products to Hong Kong a day before the Chinese government signed off on a new national security law that will crack down on dissent in the territory.
