- FCC considers banning ‘cellular modules’ made in China
- These modules send and receive communications over mobile networks
- The ban could affect devices of all kinds in IoT, industrial controls and cars.
The Trump administration is considering adding Chinese “cellular modules” to its list of electronic devices that could be banned for national security reasons.
Previously, the Federal Communications Commission (FCC) had banned Chinese laboratories from testing products intended for the United States.
Now, the FCC has included drones and routers in the ban’s expansions, with the agency considering whether to include “cellular modules” in the ban, the FCC said. Financial Times reports.
Ban could cause significant supply chain disruption
President Donald Trump meets his Chinese counterpart Xi Jinping in Beijing today, in a seismic meeting in which the two men are expected to discuss everything from trade and sanctions to the relationship between the two superpowers.
Cellular modules are electronic components that allow a device to send and/or receive cellular signals, such as those transmitted over 4G and 5G networks. These devices are included in a wide range of electronic devices, from Internet of Things (IoT) devices such as those included in smart home technology, medical systems, cars, and industrial control systems.
The potential ban on Chinese cellular modules is likely strategically timed and intended to pressure China and Xi to contribute productively during the meeting with President Trump.
The Trump administration has viewed Chinese-made devices and software as a potential national security risk, gradually strengthening bans and restrictions on Chinese-made products for use by government contractors and federal agencies. Now this ban could extend to the domestic market.
Talk to FTCharles Parton, a retired British diplomat and senior research associate at the Royal United Services Institute (RUSI), an expert on modules, said that up to 70% of the global cellular module market is controlled by a few Chinese groups, including Quectel, Fibocom, China Mobile, Sunsea and MeiG.
Like any other electronic device with an Internet connection, these devices need to be periodically updated to function and remain secure from threats. However, the FCC is concerned that these subsequent updates could result in secret surveillance software or harmful malware being installed on devices.
If the ban were to stand, the fallout on the cellular module supply chain would be huge, with manufacturers looking for alternative sources. These sources would likely be unable to keep up with the sudden increase in demand, causing cellular module prices to skyrocket, subsequently increasing the cost of the goods themselves to consumers.
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