Over the past decade, the United States has heightened scrutiny over Chinese telecommunications companies, citing concerns about espionage and national security threats. In 2019, the U.S. Department of Commerce added Huawei to its Entity List, restricting its ability to engage in commerce with U.S. companies. Subsequently, the Secure Equipment Act of 2021 barred the FCC from approving equipment from companies deemed security risks, explicitly naming Huawei and ZTE.
Current Investigation
On March 21, 2025, the FCC announced a comprehensive investigation into nine Chinese firms: Huawei Technologies, ZTE, Hangzhou Hikvision, China Mobile, China Telecom, Hytera Communications, Dahua Technology Company, Pacifica Networks/ComNet, and China Unicom (Americas). These companies are listed on the FCC’s “Covered List,” identifying entities whose equipment and services pose national security risks. The investigation aims to determine whether these firms are evading U.S. restrictions by continuing their operations through private or unregulated channels.
Statements from FCC Leadership
FCC Chair Brendan Carr expressed concerns that some companies might be attempting to bypass FCC prohibitions, stating, “We have reason to believe that…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.” He emphasized the FCC’s commitment to identifying and closing any loopholes that allow foreign state-backed actors to circumvent U.S. regulations.
In a related development, Senator Ted Cruz has called on the Director of National Intelligence, Tulsi Gabbard, to investigate whether China is covertly working to prevent Congress from extending the FCC’s authority to auction wireless spectrum—a critical component for expanding wireless services. Cruz highlighted China’s strategic moves to secure global telecommunications leadership and underscored the importance of freeing up spectrum for commercial use to maintain U.S. global leadership.
Implications for U.S. Telecommunications
The FCC’s investigation underscores ongoing concerns about the integrity of U.S. telecommunications infrastructure. Despite previous measures, including revoking authorizations and banning equipment from certain Chinese firms, the potential for these companies to operate through unregulated avenues poses continued risks. The outcome of this investigation could lead to stricter enforcement and additional regulatory measures to safeguard national security.
The FCC’s proactive stance in investigating potential evasions of U.S. restrictions by Chinese technology firms reflects a broader effort to secure the nation’s telecommunications infrastructure. As global technological competition intensifies, ensuring the integrity of communication networks remains a paramount concern for U.S. regulators and policymakers.
