Following last week’s creation of a new Council for National Security, the U.S. Federal Communications Commission (FCC) has launched an investigation into entities aligned with the Chinese Communist Party (CCP). The investigation focuses on the ongoing U.S. operations of CCP-aligned businesses whose equipment or services the FCC previously placed on its Covered List based on determinations that those equipment or services pose unacceptable risks to America’s national security.
However, the FCC recognized that despite being placed on the FCC’s Covered List, some or all of those entities may still be operating in the U.S.—either because they do not believe the FCC’s Covered List prohibits particular types of operations or otherwise.
The Covered List entities targeted in the latest FCC investigation are Huawei Technologies, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, China Mobile International USA Inc., China Telecom (Americas), Pacifica Networks/ComNet (USA) LLC, and China Unicom (Americas) Operations.
“The FCC has taken concrete actions to address the threats posed by Huawei, ZTE, China Telecom, and many other entities that pose an unacceptable risk to America’s national security, including by doing Communist China’s bidding,” Brendan Carr stated in a Friday statement. “To safeguard our networks, the FCC has placed those CCP-aligned entities on our Covered List, and we have revoked many of the FCC authorizations that they had been operating under.”
To assess their current levels of operation, the FCC sent Letters of Inquiry and at least one subpoena to the entities named on the Covered List. The FCC is now gathering responsive information and will determine any actions that may be necessary to further safeguard America’s networks and promote national security.
“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,” Carr added. “We are not going to just look the other way.”
He further added that the FCC is working through its 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 rules.
The FCC’s investigation is gathering a wide range of information regarding these Covered List entities, including detailed information about their ongoing U.S. businesses, as well as information about other companies that may be aiding their operations here. The FCC will take appropriate action in response.
Last week, the FCC announced that is conducting its first comprehensive review of submarine cable rules since 2001 to enhance the protection of the nation’s submarine cable infrastructure amid evolving national security concerns. The review also proposes that all applicants for cable landing licenses and licensees submitting periodic reports must certify that they have developed and implemented cybersecurity risk management plans. Existing licensees must also provide this certification for the first time, following a prioritization schedule.
