FCC Launches Major Probe into Chinese Firms Possible Evasion of US Telecommunications Ban

The Federal Communications Commission (FCC) of the United States has initiated what it refers to as a «comprehensive investigation» into Chinese firms already listed on its «Covered List.» This list comprises companies such as Huawei, ZTE, and China Telecom, which are purportedly connected to the Chinese Communist Party according to US officials. In 2022, the Biden administration prohibited the sale of telecommunications devices, video monitoring equipment, and services from these firms to safeguard national security and ensure that «unreliable communications tools are not permitted for use within [US] territory.»

FCC Chairman Brendan Carr stated that the agency suspects some of the entities on the Covered List may still be conducting business in the US, as they believe that the ban does not pertain to «certain types of operations or otherwise.» He noted that these companies are «attempting to circumvent those FCC restrictions by continuing to operate in America on a private or ‘unregulated’ basis.»

This inquiry marks the first significant action taken under the Council for National Security, which Carr has recently formed within the FCC. The primary objective of the new council is to lessen the dependence of the American technology and telecommunications industries on foreign adversaries, reduce the country’s susceptibility to cyber attacks and espionage, and ensure that the US remains competitive with China over essential technologies.

The FCC aims to collect extensive information about the entities on the Covered List, including insights into their current operations in the US and details about other firms that may be assisting them. The agency has stated that it will «eliminate any gaps that have allowed unreliable, foreign adversary state-backed actors to bypass [its] regulations.»