US agency votes to tighten restrictions on Chinese tech companies deemed threats

By David Shepardson WASHINGTON (Reuters) -The United States tightened rules on telecoms gear made by Chinese companies deemed a national security risk, the latest move in a broader crackdown on Beijing. The Federal Communications Commission voted 3-0 on Tuesday to block new approvals for devices with parts from companies on its "Covered List" and to allow the agency to bar previously approved equipment in certain cases. "These present loopholes that bad actors could use to threaten the security of our networks," FCC Chair Brendan Carr said. "America's foreign adversaries are constantly looking for ways to exploit any vulnerabilities in our system." The telecoms regulator previously named companies including Huawei, ZTE, China Mobile and China Telecom to the so-called "Covered List," which bars the FCC from authorizing the import or sale of new equipment from those companies. This month Carr said major U.S. online retail websites had removed several million listings for prohibited Chinese electronics as part of a crackdown by the agency. The items removed were on the list or were not authorized by the agency, such as home security cameras and smart watches from companies including Huawei, Hangzhou Hikvision, ZTE and Dahua Technology Co. Hikvision opposes extending restrictions to previously approved models, arguing the FCC is overstepping its authority. "This order is not based on any product-specific evidence," Hikvision said, adding it will "impose unnecessary harm on U.S. communities and small businesses that rely on safe, compliant, and already authorized security systems." The FCC issued a national security notice this month reminding companies of prohibited items including video surveillance equipment. The FCC on October 15 said it was moving to revoke the authority of leading Hong Kong telecom carrier HKT, a subsidiary of PCCW, to operate in the United States, citing national security concerns. In March, the FCC said it was investigating nine Chinese companies on the Covered List including Huawei, ZTE,  Hytera Communications, Dahua Technology Co, Pacific Networks Corp and its ComNet subsidiary and China Unicom (Americas). The FCC previously barred some Chinese companies from providing telecommunications services in the United States, citing national security concerns. Last month, the FCC began proceedings to withdraw recognition from seven test labs owned or controlled by the Chinese government, citing national security concerns. (Reporting by David Shepardson; Editing by Andrea Ricci and Howard Goller)

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