Close 'Glaring' Loophole on Chinese Gear Certification: FCC's Carr

The FCC must close a loophole that lets gear from Huawei and other Chinese companies be approved under equipment authorization rules, Commissioner Brendan Carr said during a Center for Strategic and International Studies webinar. The agency barred equipment by Huawei and ZTE in networks funded by USF. It should clamp down to ensure it’s not used in any U.S. systems, Carr said.

Barring the gear for USF reimbursement “made substantial progress in terms of securing U.S. national security,” Carr said. “It is time that we close this glaring loophole” that allows carriers to use private funds to buy the products, he said. “It’s the presence of this insecure gear in our networks that’s the threat, not the source of funding.” Huawei and the Chinese Embassy didn’t comment Tuesday.

The Office of Engineering and Technology continues to act on “thousands” of applications from providers on the list of companies that pose a threat to U.S. security (see 2103120058), Carr said. “The full commission should take this up, seek comment, and then through rules or otherwise provide clear guidance that OET could then apply,” said Carr, responding to our question.

“Rosenworcel has long advocated for reforming the equipment authorization process to better ensure security in new network devices and is pleased to see growing support for this idea,” said an FCC spokesperson. “The FCC is already working on addressing many of the issues Commissioner Carr spoke about.”

Carr raised concerns that cell towers in U.S. ballistic missile fields use Huawei equipment. “This is not just a concern for the military,” he said. “Everything that we do in modern society now runs on interconnected networks.” If 5G networks are threatened, “everything that we’ve come to rely on is threatened,” the commissioner said: The FCC should start a proceeding to prevent the import of any equipment made using forced labor.

President Joe Biden's administration has taken a tough line on China, as did the Trump administration, said Dean Cheng, Heritage Foundation senior research fellow. Cheng warned that with China’s growing influence, U.S. officials could risk arrest as they transit through countries in China’s orbit: “China has the real ability … to reach out and touch Americans on a scale that we have not seen before.” China had a plan as early as 2014 to sell equipment to foreign markets, while buying few manufactured goods in return, Cheng said: “This was not about Donald Trump, this was not about the current trade war.”

The FCC has no plans to force providers to embrace open radio access network technology as they replace Chinese network gear, Carr told a Competitive Carriers Association conference (see 2103300052) also Tuesday. “I hope as we go into rip and replace, ORAN is at a point where your carriers feel comfortable with it.” The agency seeks comment on ORANs (see 2103170049).

CSIS Senior Vice President James Lewis said some Chinese providers are interested in the ORAN: “They’ll say they’re not eager to see Huawei become a monopoly, either, just for price reasons.”