US FCC Reportedly Moves to Bar Chinese Labs From Certifying US-Bound Devices Including Smartphones, Laptops

The US Federal Communications Commission (FCC) is reportedly looking to bar testing of electronics for the US market in laboratories based in China. Smartphones and other cameras and computers sold in the US are required to meet FCC certification standards, and currently, the majority of this testing takes place in Chinese labs. Additionally, the FCC is also eyeing to stop Chinese companies from running data centres in the US. This move could affect companies including China Mobile, China Telecom, and China Unicom.

FCC Reportedly Seeking New Approval Process for Devices Tested in the US

As reported by Reuters, the FCC voted unanimously to ​advance a proposal to bar all Chinese labs from testing electronic ‌devices meant to be used in the US. The agency says about 75 percent of all US electronics are tested in China, and the agency wants to adopt a new approval process for devices tested in US labs or labs from other ​countries that are not seen as security risks. 

FCC Chair Brendan Carr reportedly said the commission is considering actions to limit the interconnection capabilities of entities it considers security threats. The latest decision by the FCC is likely to increase the costs for US electronic companies. Testing electronics products in the US lab is believed to be more expensive than testing in Chinese labs. This higher cost may force companies to raise product prices to cover the extra expense.

Additionally, the Reuters report states that the FCC voted to move forward with a plan to ban companies like China Mobile, China Telecom, and China Unicom from running data centres in the US. It may also block US telecom companies from connecting with other firms that are on its national security risk list. These three Chinese companies were already banned from operating in the US. 

The latest steps are a follow-up to the earlier initiatives to tighten restrictions on Beijing. Earlier this month, regulators proposed banning imports of equipment from Chinese manufacturers on the Covered List. In December last year, the FCC banned imports of new models of Chinese drones.