China

FCC Ban on Components From Covered List Chinese Firms Takes Effect as the Agency Sets Spectrum and Drone Votes for October 29

A Federal Communications Commission rule barring new equipment authorizations for devices that contain “logic-bearing” components from companies on the agency’s Covered List took effect on October 13. The Covered List names firms the government considers national security risks, including Huawei, ZTE, Hikvision, Dahua and Hytera, and has been expanded to include some Chinese drone makers.

The rule, adopted as FCC 26-50, closes a gap. Since 2022 the FCC has refused to authorize equipment made by Covered List firms. Devices from other manufacturers containing their chips or modules could still be approved. Logic-bearing components include processors and communications modules, the parts that can run software or move data.

Federal Communications Commission headquarters building in Washington, DC

Photo: Federal Communications Commission, public domain via Wikimedia Commons

Marketplaces

The rule also places obligations on online marketplaces. They must show FCC ID numbers on listings for radio-frequency devices, with deadlines in March and June 2027. The aim is to make it easier to find and remove devices sold without valid authorization, many of them shipped directly from China.

October 29 agenda

FCC Chairman Brendan Carr has set the agency’s October 29 meeting to vote on:

  • an auction of 25 megahertz of spectrum;
  • 482 megahertz for direct-to-device satellite services, which connect ordinary phones to satellites;
  • 800 MHz spectrum for drones;
  • rules on test labs, which certify equipment, to bar labs controlled by foreign adversaries;
  • rules to carry out the Rural Broadband Protection Act.

Why it matters

The component rule pushes US equipment makers to audit their supply chains and replace Chinese modules, a cost that will fall on makers of cheaper devices and smart home products. It sits alongside Commerce Department controls on chips going to China, covered in our earlier post. Washington is restricting what goes to China and what comes back in. The “rip and replace” program, which Congress funded to remove Huawei and ZTE gear from rural networks, shows how slow and costly removal is once the equipment is installed, which is the case for blocking components at the authorization stage.