The US Federal Communications Commission (FCC) has launched what it calls a “sweeping investigation” into Chinese companies already listed on its Covered List.
These companies include Huawei, ZTE, and China Telecom, which the US government views as aligned with the Chinese Communist Party. In 2022, the Biden administration imposed a ban on the sale of communications equipment, video surveillance gear, and services from these firms.
The move aimed to safeguard national security and prevent the use of “untrustworthy communications equipment” within US borders.
FCC Chairman Brendan Carr stated that the agency has reason to believe that some of the companies on the Covered List are still operating in the US, despite the ban. He noted that these entities appear to believe the restrictions do not apply to certain types of operations or specific business activities.
According to Carr, these companies are attempting to “make an end run around those FCC prohibitions by continuing to do business in America on a private or ‘unregulated’ basis.”
Huawei PhonesThis investigation marks the first major initiative under the Council for National Security, a newly established body within the FCC.
The council’s primary objectives are to reduce US dependence on foreign adversaries in the technology and telecommunications sectors, minimize vulnerabilities to cyberattacks and espionage, and ensure that the US “wins the strategic competition with China over critical technologies.”
As part of the probe, the FCC plans to collect extensive data on the activities of companies listed on the Covered List, including information about their ongoing business operations in the US. The agency will also investigate other companies that may be assisting them.
In a statement, the FCC emphasized its commitment to “closing any loopholes that have permitted untrustworthy, foreign adversary state-backed actors to skirt [its] rules.”
