U.S. Makes Historic Move To Block Certain Chinese Tech After National Security Concerns

The U.S. announced on Friday that it is banning the sale and import of certain technology from several Chinese companies after national security concerns. 

The Federal Communications Commission (FCC) finalized a rule that would block Huawei, ZTE, Hikvision, and Dahua from importing and selling certain technology that the board viewed as posing a potential threat to national security. 

“The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” FCC Chairwoman Jessica Rosenworcel said in a statement. 

The rule affects new authorizations of equipment from the companies and does not necessarily apply to anything that had previously been authorized. Brendan Carr, one of the Republicans on the FCC, said on Twitter that he hoped the board would look at revoking previous authorizations. 

Huawei, a Chinese multinational telecommunications company, has long been under scrutiny as a possible arm of the Chinese Communist Party. Earlier this year, it was reported that the Biden administration was investigating Huawei for allegedly harvesting data from U.S. military bases and missile silos. 

The rule means that no new tech from ZTE or Huawei can be approved and surveillance equipment from Dahua and Hikvision won’t be used for government or public safety purposes. 

Carr also said that the decision was the first time the panel had banned a product because of national security fears. 

“Our unanimous decision represents the first time in FCC history that we have voted to prohibit the authorization of new equipment based on national security concerns,” Carr tweeted. 

He noted that “no new Huawei or ZTE equipment can be approved. And no new Dahua, Hikvision, or Hytera gear can be approved unless they assure the FCC that their gear won’t be used for public safety, security of government facilities, & other national security purposes.”

Hikvision, a Chinese-state owned surveillance company, denied that any of its products endanger national security. 

“This decision by the FCC will do nothing to protect U.S. national security, but will do a great deal to make it more harmful and more expensive for U.S. small businesses, local authorities, school districts, and individual consumers to protect themselves, their homes, businesses and property,” the company said. 

Concern about Huawei was first brought to the forefront during the Trump administration, which took several steps to limit the reach of the company, which has also faced opposition across the world. In 2020, the U.K. took steps to ban Huawei from being linked to the country’s 5G networks.

Price Levels And Supply Chains Will Impact Christmas Tree Prices This Year

Americans currently recovering from the most expensive turkey comas in recent memory must now prepare for complications in Christmas tree markets that will lead to higher prices.

Families pining for a real tree to spruce up their living rooms should have no problem finding their desired conifer. Approximately 86% of individuals responding to a survey from the Real Christmas Tree Board said that they had no problems finding a place nearby to purchase a tree, representing a level comparable to last year.

“We expect this year to be no different,” Real Christmas Tree Board Executive Director Marsha Gray remarked. “The grower survey tells us demand is healthy. Retailers see steady consumer interest in real Christmas trees and right now supply is pretty well matched to that interest.”

Roughly 67% of wholesale growers expect to sell all of the trees they harvest, while 55% expect to sell the same number of trees as last year. With respect to input prices, however, the vast majority of wholesalers foresaw cost increases. Growers are therefore increasing prices for end buyers, with 71% planning to raise prices between 5% and 15%.

Supply chain bottlenecks and the impact of consumer demand upon sales are among the primary risk factors confronting growers. Roughly 44% of respondents identified the former issue as their greatest concern, while 35% mentioned the latter.

“There are no plot twists in the real Christmas tree story this year,” Gray continued. “While our grower survey tells us wholesale prices are likely to be higher for real Christmas trees this year, our consumer survey tells us people expected as much. The good news is fans of real Christmas trees say they believe the trees are worth the price and they are willing to pay more this year if necessary to get one — and that’s not a surprise either.”

The higher expected Christmas tree costs occur after Americans spent record amounts on Thanksgiving celebrations. The cost of the meal has risen 20% since last year, according to an analysis from the American Farm Bureau Association.

“General inflation slashing the purchasing power of consumers is a significant factor contributing to the increase in average cost of this year’s Thanksgiving dinner,” Farm Bureau Chief Economist Roger Cryan remarked in a press release. “Other contributing factors to the increased cost for the meal include supply chain disruptions and the war in Ukraine. The higher retail turkey cost at the grocery store can also be attributed to a slightly smaller flock this year, increased feed costs and lighter processing weights.”

The most recent inflation report from the Bureau of Labor Statistics appears to indicate that contractionary moves from the Federal Reserve are causing price level increases to slow. President Joe Biden nevertheless claimed that the lower headline inflation number showed “a much-needed break” in rising price levels because of his aggressive legislative agenda.

“Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation,” he said in a statement from the White House. “My economic plan is showing results, and the American people can see that we are facing global economic challenges from a position of strength.”