FCC Tightens Restrictions on Chinese Telecom Equipment Over Security Concerns
The Federal Communications Commission (FCC) voted today to expand restrictions on the import and sale of telecommunications equipment from Chinese firms Huawei, ZTE, and China Telecom, citing national security risks.
The 3-0 vote prohibits the FCC from authorizing the import of devices containing component parts manufactured by companies already on the agency’s “Covered List.” This builds upon existing restrictions that prevented the authorization of new telecommunications gear from these firms. FCC Chairman Brendan Carr explained the move is necessary to close potential loopholes, stating, “These present loopholes that bad actors could use to threaten the security of our networks. America’s foreign adversaries are constantly looking for ways to exploit any vulnerabilities in our system.”
The FCC has been actively working to enforce existing rules, with Chairman Carr noting earlier this month that major online retailers removed several million listings for banned or unauthorized electronic devices from Chinese companies, including smartwatches from Huawei, which held 21% of the global smartwatch market share in the second quarter of 2025. The agency also recently began the process of revoking the operating authority of Hong Kong telecom firm HKT, a subsidiary of PCCW, due to similar concerns. This action underscores the growing scrutiny of Chinese technology within the U.S. infrastructure.
These actions follow a history of concerns dating back to 2012, when a House Intelligence Committee report first identified Huawei and ZTE as potential national security threats due to their ties to the Chinese Communist Party. The FCC indicated it will continue to investigate potential violations and close loopholes to protect U.S. networks, and will continue to scrutinize the U.S. operations of Huawei, ZTE, and China Mobile to ensure compliance with existing sanctions.
The FCC is concerned about loopholes that can be exploited by Chinese firms on the covered list
But the agency has been concerned about loopholes that could be used to ship equipment into the United States. FCC Chairman Brendan Carr explained that the FCC is looking for “These present loopholes that bad actors could use to threaten the security of our networks. America’s foreign adversaries are constantly looking for ways to exploit any vulnerabilities in our system.” Looking to plug any gaps, the FCC voted 3-0 to prohibit the agency from authorizing the import of devices containing component parts made by the companies on the list.
The innovative Huawei Watch D2 monitors the user’s blood pressure. | Image credit-Huawei
The FCC’s Carr said earlier this month that thanks to a crackdown by the regulatory agency, major online retailers in the U.S. removed several million listings for electronic devices and products from China that were not supposed to be sold in the United States. These devices and products were on the U.S. list of equipment banned from sale in the U.S. or were not authorized for sale in the U.S.
Among the products that the FCC is focusing on are smartwatches from Huawei
These products included smartwatches and home security cameras from Chinese companies including Huawei, Hangzhou Hikvision, ZTE, and Dahua Technology Company. With 21% of global market share during Q2 2025, Huawei was the number one smartwatch manufacturer worldwide in that quarter. Apple was second as the Apple Watch enjoyed a global market share of 17% during this year’s second quarter.
The FCC reminded companies earlier this month via a national security notice about the products that were banned including video surveillance gear. Additionally, on October 15th, the FCC started the process of pulling the authority of Hong Kong telecom firm HKT to operate in the U.S. due to national security concerns. The latter is a subsidiary of Hong Kong’s PCCW.
Earlier this year, the FCC said that nine Chinese companies already on the Covered List were being looked at closely. Those firms included:
- Huawei
- ZTE
- Hytera Communications
- Dahua Technology Company
- Pacifica Networks/ComNet
- China Unicom
President Trump’s intervention saves ZTE from possible financial ruin
A deal was agreed to in July 2018. ZTE paid an additional $1 billion penalty, placed $400 million in an escrow account to cover any future violations, replaced its entire board of directors and executive leadership. Lastly, a U.S. appointed compliance monitor was embedded inside ZTE for10 years.
