At a Senate Commerce and Technology Committee hearing on Wednesday, Senator Ted Budd (R-NC) engaged with experts on the increasing cybersecurity risks posed by Chinese technology companies, particularly Huawei and ZTE. The discussion centered on China’s impact on global telecommunications and strategies to strengthen U.S. network security.
Senator Budd highlighted the Salt Typhoon hack, a Chinese cyber-espionage campaign targeting critical U.S. infrastructure, expressing alarm over the extent of China’s efforts to breach American telecommunications systems. He underscored weaknesses in U.S. defenses and stressed the urgency of countering state-sponsored cyber threats.
“This speaks to the massive scale of Chinese efforts to infiltrate America’s telecommunications infrastructure,” Budd said. “There’s a mismatch between the scope of the threat and our ability to harden networks or deter maligned state actors like China from trying again.”
Senator Budd highlighted the dominance of Chinese companies in the telecommunications industry, driven by substantial government subsidies and commercial espionage. He commended the National Defense Authorization Act (NDAA) for including funding for the “rip-and-replace” program, aimed at removing compromised Chinese hardware from U.S. networks.
Budd also questioned Dr. Malvin, a cybersecurity expert, on additional steps the U.S. could take to challenge the global influence of Huawei and ZTE. Dr. Malvin stressed the need to adopt open radio access networks (OpenRAN) and enhance international cooperation.
“OpenRAN offers a way to avoid the royalties and patents trap established by Huawei through its role in 5G standard-setting,” Dr. Malvin explained. He highlighted that OpenRAN fosters open-source collaboration among companies in the U.S., Europe, and allied nations, providing a competitive alternative to Huawei’s comprehensive telecommunications solutions, particularly in developing markets such as Africa and Southeast Asia.
Dr. Malvin also emphasized the need to dismantle antitrust barriers between Western companies like Nokia, Ericsson, Cisco, and Juniper to strengthen their ability to compete with Huawei’s dominance.
Senator Budd expressed curiosity about why OpenRAN, despite its clear benefits, has only recently gained traction. Dr. Malvin explained that earlier iterations of OpenRAN lacked the capacity to manage high-tier traffic. However, significant investments in recent years have transformed OpenRAN into a robust and viable option for telecommunications providers.
“There’s now a lot of confidence in OpenRAN’s capability to provide robust telecommunications services while offering a secure alternative to Huawei’s equipment,” Dr. Malvin said.
The discussion also addressed the difficulties smaller telecommunications providers face in managing overlapping cybersecurity mandates from multiple agencies. Patrick Donovan, a cybersecurity expert, advocated for simplifying regulations to minimize complexity and foster private-sector investment in cybersecurity.
“A coordinated response, building on existing frameworks instead of creating new ones, would help smaller operators navigate cybersecurity requirements,” Donovan stated.
Budd concurred, emphasizing that streamlining regulations would reduce the burden on smaller providers and improve cybersecurity preparedness across the telecommunications industry.
The hearing highlighted the critical need to address vulnerabilities in U.S. telecommunications infrastructure and decrease reliance on Chinese technology providers. Budd’s advocacy for OpenRAN and simplified cybersecurity policies underscores the growing bipartisan commitment to securing American networks and fostering international collaboration to counter evolving threats.
