FCC Investigates Chinese Entities on U.S. Government’s Prohibited List

Federal Communications Commission (FCC) Chairman Brendan Carr has announced a comprehensive investigation into Chinese companies suspected of continuing operations in the United States despite previous restrictions.

The probe, launched on March 21, 2025, targets entities on the FCC’s Covered List, which includes companies deemed to pose unacceptable risks to national security.

The investigation is the first major initiative of the FCC’s newly established Council on National Security.

It aims to assess the current levels of operation of CCP-aligned businesses whose equipment or services were previously placed on the Covered List.

Scope of the Investigation

The FCC has sent Letters of Inquiry and at least one subpoena to entities named on the Covered List, including Huawei, ZTE, Hytera Communications, Hikvision, Dahua Technology, China Mobile International USA Inc., China Telecom (Americas), Pacifica Networks/ComNet (USA) LLC, and China Unicom (Americas) Operations.

Chairman Carr stated, “We have reason to believe that, despite those actions, some or all of these Covered List entities are trying to make an end run around those FCC prohibitions by continuing to do business in America on a private or ‘unregulated’ basis.

We are not going to just look the other way”.

The investigation will gather a wide range of information regarding these entities, including details about their ongoing U.S. businesses and information about other companies that may be aiding their operations.

National Security Implications

This probe is part of a broader effort to safeguard America’s networks and promote national security.

The FCC’s actions build upon previous measures, such as the Secure and Trusted Communications Networks Act of 2019, which aimed to remove Chinese-made telecommunications equipment from U.S. infrastructure.

The investigation addresses concerns that these companies may be exploiting loopholes or operating in areas they believe are not covered by the FCC’s prohibitions.

This could potentially expose U.S. critical infrastructure and sensitive data to security risks.

The FCC’s focus on CCP-aligned entities aligns with broader U.S. government efforts to counter cyber threats from China.

The FBI has previously highlighted the importance of tools like Section 702 in detecting and thwarting PRC-backed cyber threat actors attempting to access U.S. critical infrastructure.

Chairman Carr emphasized the FCC’s commitment to working with partners across the federal government to identify the scope of ongoing activities and swiftly close any loopholes that have allowed untrustworthy, foreign adversary state-backed actors to skirt rules.

This investigation comes at a time of heightened awareness regarding data security and the potential risks associated with Chinese companies operating in the U.S.

Recent legislation in China, such as the National Intelligence Law of 2017 and the 2021 Data Security Law, has raised concerns about the Chinese government’s ability to compel companies to share data and cooperate with intelligence services.

As the FCC gathers information and determines necessary actions, the investigation is likely to have significant implications for U.S.-China technology relations and the broader landscape of telecommunications security in the United States.

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