The bill is aimed at telecom providers with fewer than 2 million customers, as big companies already do not use Chinese equipment
Washington: President Donald Trump on Thursday signed into law a bill that provides $1 billion to help small telecom providers replace equipment made by China's Huawei and ZTE.
The US government considers the Chinese companies a security risk and has pushed its allies not to use Huawei equipment in 5G cellular networks. Both companies have denied that China uses their products for spying.
The Federal Communications Commission has already voted to bar US phone companies from using government subsidies for equipment from the two Chinese companies. This bill affects mostly small, rural companies, because the major US network providers don't use the Chinese equipment.
The White House said that using untrustworthy vendors to build communications infrastructure threatens national security by exposing networks to actors who are potentially influenced by foreign entities.
The legislation creates a reimbursement programme that small telecom providers can use when removing and replacing equipment manufactured by entities deemed to pose unacceptable national security risks. The bill is aimed at telecom providers with fewer than 2 million customers.
"The administration will not risk subjecting America's critical telecommunications infrastructure to companies that are controlled by authoritarian governments or foreign adversaries," the White House said in a statement.