Adds more details and background, immediate comment from the companies
By David Shepardson
WASHINGTON, Sept 28 (Reuters) - Federal Communications Commission Chair Jessica Rosenworcel said on Thursday the agency's proposal to reinstate rules could give it authority to force the removal of equipment from China-based Huawei and ZTE 000063.SZ from U.S. , including data centers.
The 129-page proposal asks for public input if rules designed to bar internet service providers from blocking or throttling traffic or offering paid fast lanes would give the FCC "more robust authority to require more entities to remove and replace covered Huawei and ZTE communications equipment and services."
It also asks if the authority would allow it to prohibit Chinese equipment in any infrastructure used to route or transmit communications, including data centers and internet exchange facilities.
Huawei and ZTE did immediately respond to requests for comment.
The FCC in November banned approvals of telecommunications equipment from Huawei and ZTE, saying they posed "an unacceptable risk" to U.S. security.
In September 2022, the FCC Chinese telecom companies Pacific Networks and China Unicom (Americas) 0762.HK as threats to U.S. security under a 2019 law aimed at protecting communications .
It previously revoked or denied authority to Chinese telecom companies to provide to operate telecommunications in the United States.
The FCC said the rules would enhance the agency's "ability to protect the ’s communications from entities that pose threats to security."
Rosenworcel said existing "authority does cover broadband. This is a security loophole that to be addressed."
The proposal faces an initial Oct. 19 vote and also asks if the FCC could prohibit internet service providers from entering into traffic exchange arrangements with some companies on security grounds.
The Chinese embassy in Washington said previously the FCC "abused state power and maliciously attacked Chinese telecom operators again without factual basis." Huawei has repeatedly denied allegations of wrongdoing and said the U.S. government has "unlawfully and irrationally" targeted the company.
Washington's efforts to counter the Chinese tech giants come amid U.S. fears that Beijing could use them to spy on Americans. Washington has for years pressured U.S. allies to use Huawei or ZTE equipment from 5G or remove gear from existing .
The FCC designated Huawei and ZTE as threats, requiring U.S. carriers to remove their gear or be frozen out of an $8.3 billion government fund to purchase equipment. However, to fund the so-called "rip and replace" effort, Congress only appropriated $1.9 billion.
(Reporting by David Shepardson; Editing by Leslie Adler and Jamie Freed)
((David.Shepardson@thomsonreuters.com; 2028988324;))