FCC Blocks Labs Tied to Foreign Adversaries From Approving Devices for the US Market

The Federal Communications Commission (FCC) has taken a significant step to protect U.S. national security by overhauling its equipment authorization program. In a Report and Order adopted on May 22, 2025, and released on May 27, 2025, the agency will now block any telecommunication certification bodies (TCBs) and testing labs that are owned or controlled by entities considered a threat to the United States. 

Before any electronic device - from a smartphone to a baby monitor - can be legally sold in the U.S., it must be tested and certified to ensure it meets FCC standards for safety and performance. This new rule focuses directly on the integrity of the labs and certification bodies that perform these crucial tests.

The new regulations create a category of "prohibited entities" that are now barred from owning, controlling, or directing any lab in the FCC's equipment authorization program. An entity falls into this category if it appears on one of several U.S. government watch lists, including:

The FCC’s “Covered List” (which includes companies like Huawei and ZTE) The Department of Commerce's list of “foreign adversaries "The Department of Défense's list of Chinese military companies The Department of Treasury’s sanctions list for entities linked to the Chinese military-industrial complex

This means labs with ownership ties (defined as 10% or more) to companies on these lists can no longer approve devices for the American market.

A key aspect of this rule is that it applies regardless of where a lab is physically located. The determining factor is its ownership and control.

For example:

A testing lab located in China and owned by Huawei is now prohibited. However, a testing lab located in a U.S.-allied country like Germany or South Korea would also be prohibited if it is owned or controlled by a company on the banned lists.

The rule aims to close a potential loophole where foreign adversaries could use their influence over these "gatekeeper" labs to approve insecure equipment, submit fraudulent documentation, or misappropriate sensitive intellectual property from U.S. companies. FCC Chairman Brendan Carr noted that roughly 75% of electronics testing currently occurs in China, and the Commission will also seek ways to "reshore America's testing capacity.

For more information check here: https://docs.fcc.gov/public/attachments/FCC-25-27A1.pdf