The United States (US) Federal Communications Commission (FCC) has designated China-based telecom equipment vendors Huawei and ZTE as national security threats and cut them off from billions of dollars in federal broadband subsidies.

The action means that money from federal subsidies may no longer be used by the American internet providers to expand broadband access using Huawei and ZTE equipment.

According to the FCC, it will study how carriers could remove and replace existing Huawei and ZTE products in their networks.

Recently, the US blocked 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.