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FCC votes to ban all Chinese labs from certifying electronics sold in the US due to national security concerns — ruling would affect 75 percent of US-bound devices

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Why This Matters

The FCC's decision to ban Chinese labs from certifying electronics sold in the U.S. marks a significant shift in national security policy, impacting a large portion of the electronics supply chain. This move aims to reduce potential security vulnerabilities associated with Chinese testing facilities, but it also introduces logistical and cost challenges for manufacturers. The ruling underscores increasing U.S.-China tensions and highlights the growing emphasis on security in tech supply chains.

Key Takeaways

The Federal Communications Commission (FCC) voted unanimously on Thursday to advance a proposal that would strip every testing lab in China and Hong Kong of its ability to certify electronics for sale in the U.S., according to a Reuters report.

The FCC estimates that roughly 75% of all U.S.-bound electronics are currently tested in Chinese facilities, a level that the agency now considers a national security risk. FCC Chair Brendan Carr said the commission is pursuing actions to limit the interconnection capabilities of entities it considers security threats.

Every device that emits radio frequencies requires FCC equipment authorization before it can be legally sold in the U.S. That process requires testing by an FCC-recognized lab, and manufacturers have long relied on Chinese labs because they sit next to the factories that produce the hardware.

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According to compliance data compiled by MarkReady, 126 of the FCC's 591 globally recognized test labs are located in mainland China or Hong Kong. 50 of those are in Shenzhen alone, and the wider Pearl River Delta corridor accounts for 65% of the Chinese total.

27 of the affected facilities are Chinese subsidiaries of major Western testing firms, including Intertek, SGS, TUV Rheinland, and Bureau Veritas. Those companies operate labs in the U.S., Europe, and Taiwan that can absorb redirected work, but the shift won’t be seamless. Basic FCC certification testing runs between $400 and $1,300 at Chinese labs, compared with $3,000 to $4,000 at U.S. equivalents.

The FCC already banned 15 state-owned or government-affiliated Chinese labs between September and February under its original "Bad Labs" order. Thursday's vote extends that prohibition to all remaining labs in China, regardless of ownership.

In a separate 3-0 vote, the commission also advanced a proposal to ban China Mobile, China Telecom, and China Unicom from operating data centers in the U.S. The FCC had previously revoked those companies' retail telecom licenses but hadn’t addressed their remaining wholesale and infrastructure operations. The new proposal would also consider banning U.S. carriers from interconnecting with any company on the FCC's national security "Covered List" or any carrier using equipment from Huawei or ZTE.

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Thursday's vote opens a public comment period expected to last 60 to 90 days, followed by a final rule and transition period. The FCC has been steadily expanding its restrictions on Chinese technology, banning imports of new foreign-made consumer routers in March, new foreign-made drones in December, and proposing restrictions on Chinese involvement in undersea cables last year.

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