The Federal Communications Commission (FCC) has launched a sweeping investigation into nine Chinese companies that were previously placed on its Covered List due to concerns about national security. This includes major players in telecommunications and surveillance technology, such as Huawei, ZTE, and others like Hangzhou Hikvision, Dahua Technology, and China Mobile. The investigation is focused on determining whether these companies have circumvented U.S. restrictions and continued operations in the U.S. despite being banned from selling their products or providing services.
FCC Chairman Brendan Carr made the announcement on March 21, 2025, revealing that the agency has already issued Letters of Inquiry and at least one subpoena to assess the ongoing activities of these firms. The investigation is being led by the newly formed Council on National Security, which is part of the FCC’s broader initiative to address growing security threats from Chinese state-backed companies.
The goal is to determine whether these companies have been able to continue operations in the U.S. through private or unregulated channels, bypassing the restrictions placed on them.
The nine companies under scrutiny were placed on the Covered List after their equipment and services were deemed to pose an unacceptable risk to U.S. national security. The Covered List prevents the sale of their products, particularly in critical network infrastructure, including optical carrier systems, wireless transmission systems, and cable modem technologies. Despite these restrictions, experts believe that some of these companies might be finding ways to evade the ban, continuing to operate in the U.S. market under alternative means.
This probe is a response to concerns that unauthorized equipment could create vulnerabilities in the nation’s telecommunications infrastructure, potentially enabling espionage, surveillance, or cyberattacks.
This investigation has the potential to reshape U.S. policies on foreign technology companies operating within its borders. It could lead to stricter regulations and further actions against Chinese technology firms that continue to pose a risk to U.S. infrastructure. The outcome of the investigation will not only impact the companies under scrutiny but also influence future decisions on foreign involvement in critical sectors, especially in the face of growing cybersecurity threats. The FCC, through its Council on National Security, is working in coordination with federal partners to close any loopholes that may allow foreign adversaries to continue to operate in the U.S. telecommunications market.
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