The Federal Communications Commission (FCC) of the United States has announced that it is considering a ban on China’s three major telecommunications giants from operating data centers in the United States, and may prohibit U.S. telecom operators from interconnecting with these companies. This move signifies that the U.S. now views communication networks as strategic infrastructure and is committed to excluding Chinese telecom companies from its core systems.
The FCC has preliminarily concluded that U.S. telecom operators operating in the U.S. should be prohibited from interconnecting with companies on the “Covered List” of national security risks to avoid posing national security issues. This list includes China Mobile, China Telecom, and China Unicom.
Additionally, the agency is also considering extending this ban to the subsidiaries of these companies and restricting Chinese telecom companies with data centers or Points of Presence (PoP) from connecting with other companies.
Furthermore, the FCC may also prohibit telecom operators from interconnecting with enterprises that have equipment from companies listed on the Covered List. This means that a telecom provider (regardless of nationality) could be barred from interconnecting with U.S. networks if it continues to use Huawei or ZTE equipment on its network.
The FCC is expected to conduct an initial vote on this proposal at a meeting scheduled for April 30.
In response to the U.S. actions, the Chinese Embassy in Washington, D.C. has stated that China “consistently opposes the generalization of the concept of national security and the abuse of state power to suppress Chinese companies.”
In fact, this proposal targeting data centers is just one part of a series of recent FCC actions to strengthen national security.
Earlier this week, the FCC announced that it will vote at the end of the month on whether to ban all Chinese labs from testing electronic devices such as smartphones, cameras, and computers destined for the U.S.
Currently, about 75% of electronic products globally are tested in labs in China. If this proposal is approved, it will significantly expand last year’s ban, which only targeted labs that are “government-owned or controlled.”
FCC’s actions concerning hardware import restrictions have already had a significant impact on consumers’ daily lives.
Last month, the agency announced a ban on importing all new foreign-made (primarily Chinese) household routers. It is estimated that Chinese manufacturers currently control at least 60% of the U.S. household router market.
Routers are devices that connect computers, phones, and smart devices to the internet. The FCC cited a White House review stating that these devices pose “serious network security risks that could be exploited to immediately and significantly disrupt critical infrastructure in the United States.”
In addition to routers, the FCC also banned the import of all new models of Chinese-made drones in December last year.
This series of policies demonstrates that the U.S. is comprehensively strengthening regulatory measures on Chinese technology and its equipment operating in the U.S., from data transmission pathways and security checks on electronic products to household network connectivity devices.