House Lawmakers Call for Blacklisting China’s Quectel

January 5, 2024 by Marc Selinger|Congress

The leaders of the House Select Committee on China urged the Defense and Treasury departments on Jan. 4 to blacklist China-based Quectel Wireless Solutions, saying the manufacturer of Internet connectivity modules has troubling ties to the Chinese military.

In a news release, Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorthi, D-Ill., the committee’s chairman and ranking member, respectively, expressed concern that China could “potentially weaponize Internet modules made by Quectel and other [Chinese] firms to infiltrate, track, or sabotage American devices.”

Quectel “is the world’s largest supplier of cellular [Internet of Things] modules and is currently gaining market share in the U.S.,” the lawmakers wrote in a letter to Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen. “With tens of millions of Quectel modules in smart devices across the country, its status as a contributor to the [Chinese military] is highly relevant.”

The letter calls for placing Quectel on the Department of Defense's 1260H list of Chinese military companies and on Treasury's Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List, or NS-CMIC List. Placement on the first list would highlight Quectel's role in China's civil-military fusion strategy, while placement on the second list would restrict Quectel's access to U.S. public investment, including stocks.

A Defense spokesperson said the department has "received the letter and will respond directly to Congress on this." Treasury did not immediately respond to a request for comment.

In a statement, Quectel President and Chief Sales Officer Norbert Muhrer criticized the letter, saying there is "no basis" to add his company to any U.S. government restricted list. “We are disappointed that members of the U.S. Congress would sign a letter making false accusations about Quectel,” he said. “Our products are designed only for civil use cases and do not pose any threat to the national security of the United States."