The Federal Communications Commission (FCC) is currently scrutinizing the U.S. operations of several prominent Chinese telecom firms, including Huawei, ZTE, and China Telecom. This investigation is rooted in concerns that these companies may not be adhering to restrictions imposed on their U.S. business activities. Both Huawei and ZTE are significant suppliers of telecom equipment to rural wireless providers in the United States.
The FCC’s inquiry also extends to other entities like China Mobile International USA, along with the U.S. branches of China Telecom and China Unicom. The FCC aims to gather detailed information regarding how these companies conduct their operations within the U.S. One primary objective is to assess whether these firms might be evading U.S. restrictions through assistance from other companies. According to FCC Chairman Brendan Carr, there are indications that some of these businesses are not complying with U.S. sanctions.
Some have had their business authorization revoked, while others are on a list that prohibits U.S. entities from purchasing their products. Senator Tom Cotton has expressed support for the FCC’s efforts, stating that these Chinese telecom companies serve as fronts for the authoritarian Chinese intelligence apparatus. Carr emphasizes the need for the FCC to quickly assess the activities of these companies and to close any loopholes that allow foreign adversaries to circumvent U.S. regulations.
In response, the Chinese embassy in Washington has voiced its opposition to what it describes as excessive measures that target Chinese firms under the guise of national security. Chinese officials have repeatedly asserted that their tech companies, including Huawei, do not engage in espionage. However, national laws in China necessitate that companies cooperate with government demands.
The investigation also includes additional Chinese firms such as Hytera Communications, Hikvision, Dahua Technology, and telecom provider Pacifica Network.