FCC launches crackdown on foreign adversary infiltration of US communications by requiring any entity with 10% or more foreign ownership to disclose their ties to nations like China, Cuba, Iran, North Korea, Russia, and Venezuela.
Key Takeaways
- The FCC has implemented a new rule requiring disclosure of foreign adversary ownership or control exceeding 10% in federally licensed communication entities.
- This security measure specifically targets influence from China, Cuba, Iran, North Korea, Russia, and Venezuela’s Maduro regime.
- The Commission’s reviews have revealed that some testing laboratories may have concerning ties to the Chinese Communist Party.
- The proposal builds upon previous FCC actions including bans on Chinese tech companies deemed national security threats.
- FCC Chairman Brendan Carr emphasized that increased transparency is essential for identifying and mitigating foreign threats to US communications infrastructure.
FCC Unveils Sweeping Foreign Ownership Transparency Rule
The Federal Communications Commission has taken decisive action to protect America’s communications infrastructure from foreign adversary influence. The new rule requires all federally licensed entities—including carriers, broadcasters, and satellite operators—to disclose when they are owned or controlled by designated foreign adversaries at a level exceeding 10%. This measure specifically targets influence from six nations considered threats to national security: China, Cuba, Iran, North Korea, Russia, and Venezuela under Maduro’s regime.
The initiative comes after concerning discoveries during the Commission’s reviews of the communications sector. The FCC’s investigation revealed alarming connections between testing laboratories and potential foreign adversaries, particularly China. These laboratories play a crucial role in certifying that communications equipment meets American standards before entering the market, making their independence from foreign influence essential to national security.
Closing Security Gaps in America’s Communications Infrastructure
The Commission’s move represents a significant expansion of its ongoing efforts to secure American communications networks against foreign threats. It follows earlier actions, including the creation of the “Covered List” of equipment and services deemed to pose national security risks. Under this framework, the FCC can revoke authorizations from entities controlled by adversarial foreign governments and prohibit certain Chinese telecommunications products from being used in American networks.
“The U.S. Government has long recognized that foreign adversaries have been engaged in a widespread and coordinated effort to exploit, attack, and otherwise compromise the integrity of U.S. communications networks,” an FCC announcement of the rule stated.
This new rule is designed to provide regulators and the public with a comprehensive view of potential threats embedded within U.S. communications networks. By requiring detailed disclosure of foreign adversary ownership or control, the Commission aims to shine a light on previously hidden influences. Entities with more than 10% voting or equity held by an adversary will be required to report these details, creating unprecedented transparency in an industry vital to national security.
Targeting Testing Labs and Certification Bodies
Beyond licensed carriers and operators, the FCC has expanded its focus to include equipment test laboratories and telecommunications certification bodies. A Further Notice of Proposed Rulemaking addresses these critical components of the communications supply chain, aiming to ensure that the organizations responsible for certifying equipment are themselves trustworthy. The Commission now requires approval of certification bodies, accreditation bodies, and certain test labs based on comprehensive trustworthiness evaluations.
“While the agency has in recent years barred entities on the FCC’s Covered List from having their devices approved for use in the U.S. due to determinations that such devices pose national security risks, these new rules ensure that the accreditation and certification bodies and test labs are themselves not untrustworthy actors” By Press Release
Of particular concern are the FCC’s findings regarding certain testing laboratories potentially having “deep ties to the Chinese Communist Party (CCP).” This revelation highlights the sophisticated nature of foreign adversary tactics to infiltrate American communications infrastructure. By exploiting these testing laboratories, foreign governments could potentially approve compromised equipment for use in critical U.S. networks, creating backdoors for espionage or sabotage.
Leadership Calls for Transparency and Vigilance
FCC Chairman Brendan Carr has been outspoken about the importance of this new rule in protecting American communications infrastructure. He emphasized that the current regulatory framework contains significant gaps that could be exploited by foreign adversaries like China. The expanded disclosure requirements aim to close these vulnerabilities by creating comprehensive visibility into foreign ownership across the communications sector.
“Sunlight is the best disinfectant,” he wrote, noting that current collections leave “gaps” that mask how Beijing and others might exert control.
“Foreign adversaries like China are engaged in a multi-pronged effort to identify and exploit any vulnerabilities in our communications infrastructure,” Carr wrote in a statement.
The FCC’s action aligns with broader congressional efforts to secure American communications, as demonstrated by the House passage of the Foreign Adversary Communications Transparency Act. Looking ahead, the Commission is considering implementing recurring disclosure requirements and creating a searchable database of foreign ownership information. These measures would further enhance the government’s ability to identify and respond to evolving threats from foreign adversaries targeting America’s vital communications infrastructure.
