The Federal Communications Commission said on Tuesday it plans to vote next month on a proposal that would prohibit the sale in the United States of electronic devices containing components from firms the agency has placed on its blacklist.
The FCC maintains a roster of companies whose equipment has been restricted from sale in the United States because of national security concerns. That list includes the Chinese telecoms company Huawei. Under current rules, however, there is no specific restriction preventing U.S. sales of consumer electronics such as smartphones that incorporate chips designed by units of those blacklisted companies, including chips from Huawei's Hi-Silicon unit.
The proposal under consideration, if adopted, is intended to close what the agency characterizes as a "loophole" in existing regulations. In announcing the planned vote, the FCC said the measure aims to "protect Americans from electronic devices that have been determined to pose unacceptable risks to the national security of the United States," according to the commission's press release.
The text of the press release highlights the FCC's view that equipment from certain firms presents risks significant enough to merit sale restrictions. The planned vote next month would determine whether the ban on sales will be extended to include devices that merely contain components designed by those blacklisted entities, rather than only equipment produced directly by them.
The measure's proponents view the change as a narrowing of a regulatory gap that currently allows some consumer electronics to enter the U.S. market despite containing parts tied to companies the FCC has already restricted. The agency framed the proposed action as a security-focused move that would update enforcement to cover component-level links to listed firms.
Key points
- The FCC plans to vote next month on a proposal to ban U.S. sales of devices containing components from blacklisted firms.
- The agency's blacklist includes Huawei; current U.S. sales restrictions target equipment from such firms but do not explicitly cover devices that use components designed by their units, such as Hi-Silicon chips.
- The proposed rule seeks to close a described "loophole" and is presented as a national security protection measure.
Risks and uncertainties
- Uncertainty over whether the FCC vote next month will approve the proposal - the outcome is not determined in the announcement.
- The existing absence of rules specifically barring sales of devices with components from blacklisted firms leaves open a regulatory gap that the FCC aims to address.
- Potential market and regulatory implications for manufacturers and sellers of consumer electronics that incorporate components designed by firms on the FCC list, depending on how the rule is implemented and enforced.