The US Decides to Tighten Regulations on Chinese Tech Companies: US FCC to "Close Loopholes" - Next Step in Tech Regulations Against China is to Stop at the "Component Level"

The US Decides to Tighten Regulations on Chinese Tech Companies: US FCC to "Close Loopholes" - Next Step in Tech Regulations Against China is to Stop at the "Component Level"

2025年10月30日 01:24

1. What Happened—Sealing the "Component Level" in Act 2

On October 28 (Eastern US), the US FCC adopted new rules with a 3–0 unanimous decision. The focus is on extending the ban to equipment containing components from companies on the "Covered List," and further allowing already approved products to be withdrawn from the market if there are security concerns. Previously, "OEM products with changed brands" and "models sold under old approval numbers" have been loopholes, but this will be closed. The target is not limited to communication devices but also extends to consumer devices such as surveillance cameras and smartwatches.Investing.com


The Covered List includes companies such as Huawei, ZTE, China Mobile, China Telecom, major surveillance camera companies Hikvision, Dahua, and radio manufacturer Hytera. The new decision aims to further narrow the gray areas of "mixed components" and "already approved models," following the Secure Equipment Act of 2021 and the new approval suspension of 2022.Investing.com


2. Coordinated "Peripheral Front"—EC, Telecom Carriers, Testing Labs

In October, prior to the vote, major US e-commerce sites removed millions of banned and unapproved devices. The categories ranged from surveillance cameras and smartwatches to various gadgets. This decision will provide institutional support to prevent the re-entry of these products at the component level, ensuring the "cleanup" is not just a one-time event.Reuters


Furthermore, on October 15, the FCC initiated procedures to revoke the US authorization of Hong Kong telecom operator HKT. In the past, they have also removed China Telecom Americas, China Unicom (Americas), Pacific Networks/ComNet, and are simultaneously tightening the network side. Additionally, they have begun reviewing the withdrawal of accreditation for seven testing labs involved with the Chinese government, stepping into containment from the "certification entry point."Reuters


3. "Practical Impact" Faced by Companies and On-Site Operations

  • Retail/EC: Strengthening algorithmic detection of re-listings, seller reviews, and model number linking is essential. OEM products with the same content but different labels and sales under old FCC IDs will be more easily blocked.Reuters

  • SI/Contractors: The replacement and maintenance costs of existing surveillance cameras and radios will increase. The stagnation of inventory and the cost burden of returns and disposal cannot be ignored. Hikvision argues that it is "not based on evidence of individual products," but operational burdens are unavoidable.Investing.com

  • Certification and Testing Industry: If the accreditation of Chinese labs is withdrawn, there may be a concentration of reviews on alternative third-party organizations and an extension of lead times.Investing.com

  • Supply Chain: Tracking at the component level (BOM management, traceability) and procurement of alternative components will be the key to competitiveness.


4. What Was Discussed on Social Media (Discussion Map)

Proponents (Security and Policy Community)

  • On LinkedIn, industry professionals praised it as a "reasonable next step to close loopholes." There was a view that concerns about "sales under different names" and component-based inflows, such as those from DJI, would be mitigated by this decision.LinkedIn


Field and Practical Parties (Sellers and Contractors)

  • On Reddit's eBay seller board, there were numerous accounts of Dahua product listings being suddenly blocked, with shared confusion over "why only me when there are similar listings remaining." On the CCTV board, there were many voices advocating for avoiding Chinese NVRs.Reddit


Concerned Parties (SMEs and Local Governments)

  • There were posts expressing concern about the cost increase for small businesses and municipalities that have relied on cost-competitive Chinese equipment. On Facebook, there was also confusion and misunderstanding about **"NDAA compliance", with experts spreading explanations that **compliance does not equal legality** (FCC approval and the Covered List are separate axes).Facebook


In summary, there is a balance between voices appreciating the reduction of security risks and dissatisfaction with on-site costs and inventory issues. The information gap over **regulatory boundaries (what is truly not allowed)** is amplifying the confusion.


5. Points of Interest Going Forward (Timeline)

  • Short Term (by the end of the year): EC companies will strengthen their response to re-listings and model number changes. The **"cat-and-mouse game"** of seller reviews and automatic detection will continue.Reuters

  • Medium Term (6–12 months): Discussions on the gradual market exit or re-certification of already approved equipment will progress. Depending on the review of lab accreditation, there could be a bottleneck in certification within the supply chain.Investing.com

  • Telecommunications Network Side: The outcome of the HKT case could set a precedent for overseas operators' connections to the US. It could become a milestone alongside past China Unicom/Telecom exits.Reuters


6. Practical Tips for Investors and Businesses

  1. BOM Inventory: Conduct an inventory to ensure that the final product does not contain chips or modules from Covered List companies. If applicable, consider alternative designs.

  2. FCC ID and Generation Management: The reuse of old approval numbers and continued sales of minor change products pose risks. Maintain a ledger for each model.

  3. Customer Explanation Kit: SI/contractors should provide a set that includes the basis for replacement, cost estimates, and alternatives, clearly stating that "NDAA compliance does not automatically mean OK."FCC Docs

  4. Sales Platform Measures: To avoid being caught by EC's re-listing detection, establish a system to immediately provide evidence of legality (approval documents, origin, and component traceability).Reuters


7. Why Now—Policy Context

The FCC has been conducting investigations into nine companies since spring 2025, focusing on the issue of regulatory evasion through "private and non-regulatory channels." The two-pronged attack on "component level" and "already approved products" is designed to enforce past bans.Reuters


Reference Information and Sources

  • Basic information on the content and background of the October 28 decision (via Reuters/Investing.com).Investing.com

  • Primary reporting on the matter (Reuters main body).Reuters

  • Reports on the deletion of millions of listings on major EC platforms (Reuters).Reuters##HTML_TAG

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