US agency votes to bar Chinese labs deemed security risks from testing US electronics

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By David Shepardson

WASHINGTON (Reuters) -The Federal Communications Commission voted on Thursday 4-0 to finalize rules barring Chinese labs deemed risks to U.S. national security from testing electronic devices such as smartphones, cameras and computers for use in the United States.

All electronics used in the United States must go through the FCC’s equipment authorization process before they can be imported.

The FCC says about 75% of all electronics are tested in labs located inside China.

The Chinese Embassy in Washington said on Thursday it opposes the United States “over-stretching the concept of national security, using national apparatus and long-arm jurisdiction to bring down Chinese companies. We oppose turning trade and technological issues into political weapons.”

The FCC said it had found that many currently recognized labs potentially have deep ties to the Chinese Communist Party, including some connected to Chinese state-owned-enterprises or the Chinese military. These labs have tested thousands of devices bound for the U.S. market over the last several years, the agency added.

“These labs provide a gateway into the U.S. telecommunications infrastructure,” FCC Chair Brendan Carr said on Thursday. “It is not hard to imagine that an unreliable lab —one beholden to a foreign adversary — could sign off on insecure gear entering the U.S. market.”

The FCC in November 2022 banned approvals of new telecommunications equipment from Huawei and ZTE, as well as telecom and video surveillance equipment from Hytera Communications Corp, Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology Co.

The order bans testing by labs in China subject to control or direction from companies on the FCC’s “Covered List” that deems specific communications equipment and services as a threat to U.S. national security. Under the rules, the FCC will withdraw its recognition of labs if it determines they are tied to a prohibited company.

The agency is also seeking comment on a separate proposal to expand the testing prohibition to all labs in China and other foreign adversaries.

In addition, the FCC voted on Thursday to advance a proposal to require entities with significant ties to China or other foreign adversaries to disclose all licenses and authorizations from the FCC.

In March, the FCC said it is investigating nine Chinese companies, including Huawei, Hikvision China Mobile and China Telecom to determine if they are seeking to evade U.S. restrictions.

(Reporting by David Shepardson; Editing by Mark Porter, Rod Nickel and Sonali Paul)