FCC Conducting Investigation into Chinese Entities Placed on the Government’s Prohibited List

The Federal Communications Commission (FCC) has launched a sweeping investigation into nine Chinese technology and telecommunications companies that were previously placed on its Covered List, aiming to determine if these firms are evading U.S. restrictions. 

FCC Chairman Brendan Carr announced on March 21, 2025, that the agency has sent Letters of Inquiry and at least one subpoena to these entities to assess their current levels of operation within the United States despite previous prohibitions.

Investigation Details and Target Companies

This probe marks the first major initiative led by the FCC’s newly established Council on National Security.

The investigation specifically targets CCP-aligned businesses whose equipment or services were previously determined to pose “unacceptable risks to America’s national security”. 

The nine companies under scrutiny include major telecommunications equipment manufacturers Huawei Technologies and ZTE Corporation, surveillance technology providers Hangzhou Hikvision Digital Technology and Dahua Technology Company, communications equipment maker Hytera Communications, and telecommunications service providers China Mobile International USA, China Telecom (Americas), Pacifica Networks/ComNet, and China Unicom (Americas).

“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,” Chairman Carr stated. 

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

FCC Tightens Regulations on Chinese Tech

The FCC previously added these companies’ products to its Covered List, a database of communications equipment and services deemed to pose risks to national security.

Under FCC regulations, products on the Covered List, identified by specific technology codes such as those used in Form 477 data (codes 10-90), cannot be sold in the U.S. market. 

These restrictions particularly affect optical carrier/fiber connections (code 50), cable modem technologies (codes 40-43), and various wireless transmission systems (code 70) commonly deployed in critical network infrastructure.

The investigation follows years of escalating actions against Chinese technology firms by Washington, including previous FCC decisions barring these companies from providing telecommunications services in the United States. 

Network security experts have warned that unauthorized equipment could create vulnerabilities in critical communications infrastructure, potentially enabling cyberattacks, espionage, or surveillance by foreign adversaries.

The Council includes representatives from eight Bureaus and Offices within the FCC to foster cross-agency collaboration.

“The FCC, working through our new Council on National Security and in coordination with partners across the Federal government, will identify the scope of their ongoing activities and move quickly to close any loopholes that have permitted untrustworthy, foreign adversary state-backed actors to skirt our rules,” Chairman Carr explained.

As this investigation unfolds, it may lead to further regulatory actions and have significant implications for the U.S. telecommunications landscape. 

The outcome could potentially reshape Chinese tech firms’ involvement in the U.S. market and influence future policies regarding foreign technology companies operating in critical infrastructure sectors.

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