The Federal Communications Commission (FCC) has initiated a wide-ranging investigation into several China-linked companies, suspecting them of actively circumventing U.S. national security measures. The probe, announced by FCC Chairman Brendan Carr, aims to identify and close any loopholes allowing these entities to continue operating in the United States despite being designated as national security risks.
The FCC’s concerns stem from a persistent belief that companies already placed on the agency’s “Covered List” – which includes prominent names like Huawei Technologies, ZTE Corp., China Mobile International USA Inc., and China Telecom (Americas) Corp. – are still conducting business in the U.S. through “private or ‘unregulated’ basis.” This alleged evasion poses significant risks to the integrity and security of American telecommunications infrastructure.
“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,” stated Chairman Carr. “We are not going to look the other way.”
The investigation comes on the heels of the FCC establishing its new Council on National Security in March 2025, specifically tasked with addressing rising threats of state-linked cyber espionage and other national security concerns targeting the U.S. telecommunications sector. The agency has sent letters of inquiry and at least one subpoena to the targeted companies, seeking detailed information about their ongoing U.S. operations and any entities that may be aiding them.
This latest action builds upon a series of moves by the U.S. government to restrict Chinese telecom and tech firms, citing concerns over potential backdoors for espionage and data theft. Previous measures include banning these companies from providing telecommunications services and implementing the “Rip and Replace” program to remove their equipment from U.S. networks.
The FCC is coordinating with other federal agencies in this complete inquiry. The outcome of the investigation could lead to further enforcement actions, including substantial fines and a more stringent regulatory framework to ensure that companies posing a national security threat are completely cut off from the U.S. market. The ongoing efforts underscore the U.S. commitment to safeguarding its critical communications infrastructure from foreign adversaries.
