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The FCC's Quest for Compliance: Uncovering Chinese Firms' End-Runs Around US Regulations



The FCC is investigating whether Chinese manufacturers blacklisted on its Covered List are still doing business in America, either by misreading the rules or willfully ignoring them. The agency has sent formal letters of inquiry and at least one subpoena to entities on the list, including Huawei, ZTE, China Telecom, and others.

  • The US Federal Communications Commission (FCC) is investigating potential compliance issues with Chinese firms listed on its Covered List.
  • The investigation aims to determine if these entities continue to operate in the US despite being blacklisted.
  • The FCC has dispatched formal letters and issued a subpoena to companies on the list, including Huawei and ZTE.
  • There is reason to believe that some entities are attempting to circumvent regulations by continuing to engage in business activities in the US.
  • The investigation follows high-profile actions taken against Chinese firms, including Huawei's addition to the Commerce Department's entity list in 2019.
  • Non-compliance could result in severe consequences, including fines and forced removal of prohibited equipment from US networks.



  • The United States Federal Communications Commission (FCC) has embarked on a mission to identify and address potential compliance issues involving Chinese firms listed on its Covered List. This list, established under the Secure and Trusted Communications Networks Act of 2019, aims to mitigate national security risks posed by entities deemed to be "CCP-aligned" – i.e., businesses closely affiliated with the Chinese Communist Party.

    At the forefront of this investigation is the FCC's attempt to determine whether these entities continue to operate in the United States despite being blacklisted. The agency has dispatched formal letters of inquiry and issued at least one subpoena to companies on the list, including notable firms such as Huawei, ZTE, China Telecom, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology, Dahua Technology, and China Mobile International USA.

    According to FCC Commissioner Brendan Carr, there is reason to believe that some or all of these entities are attempting to circumvent the regulations by continuing to engage in business activities within the United States on a private or "unregulated" basis. The agency's primary objective is to close any potential loopholes and prevent foreign adversary state-backed actors from exploiting weaknesses in the system.

    This probe follows a series of high-profile actions taken against Chinese firms, including Huawei's addition to the Commerce Department's entity list in 2019. The sanctions imposed on Huawei had a significant impact on the company's business operations, with profits plummeting nearly by half compared to the previous year.

    However, it appears that some entities are attempting to find alternative means of operating in the United States. As the investigation unfolds, the FCC will work to gather detailed information about these companies' ongoing US operations, including any domestic firms that may be unwittingly aiding their efforts.

    The consequences of non-compliance are likely to be severe for the affected parties. The FCC has pledged to take "appropriate action" in response to any identified transgressions, which could range from fines to forced removal of prohibited equipment from US networks.

    In a broader context, this investigation highlights the ongoing challenges posed by China's influence in the global telecommunications sector. As the United States continues to grapple with issues related to national security and intellectual property theft, it remains to be seen whether the FCC's efforts will prove effective in preventing Chinese firms from exploiting loopholes in US regulations.



    Related Information:
  • https://www.ethicalhackingnews.com/articles/The-FCCs-Quest-for-Compliance-Uncovering-Chinese-Firms-End-Runs-Around-US-Regulations-ehn.shtml

  • https://go.theregister.com/feed/www.theregister.com/2025/03/24/fcc_chinese_telco_huawei/


  • Published: Mon Mar 24 17:15:55 2025 by llama3.2 3B Q4_K_M













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