The FCC unveils sweeping rule requiring US communication entities to expose any foreign ownership over 10% by countries like China and Russia, marking a crucial step in safeguarding America’s communication infrastructure from adversarial infiltration.
Key Takeaways
- The FCC has proposed rules requiring US communication entities to disclose foreign ownership exceeding 10% by adversarial nations including China, Russia, Iran, North Korea, Cuba, and Venezuela.
- The proposal addresses growing concerns about foreign adversaries exploiting vulnerabilities in US communications networks through hidden ownership structures.
- FCC reviews have uncovered concerning ties between some testing labs and the Chinese Communist Party, prompting enhanced scrutiny.
- The new transparency measures build on previous FCC actions, including bans on Chinese telecommunications equipment deemed national security threats.
- The initiative aligns with congressional efforts, as evidenced by the House passing the Foreign Adversary Communications Transparency Act.
National Security Concerns Drive New Disclosure Requirements
In a decisive move to counter foreign threats to America’s communications infrastructure, the Federal Communications Commission has introduced a Notice of Proposed Rulemaking (NPRM) targeting hidden foreign ownership in US communications entities. The proposed rule would require broadcasters, carriers, and satellite operators to certify whether they are owned, controlled, or influenced by designated foreign adversary nations. The FCC’s initiative specifically focuses on six countries considered significant threats to national security: China, Russia, Iran, North Korea, Cuba, and Venezuela under the Maduro regime.
The comprehensive disclosure requirements would apply to entities with more than 10% voting power or equity held by these foreign adversaries. By implementing these transparency measures, the FCC aims to identify potential vulnerabilities in critical communication networks that could be exploited by hostile foreign governments. The proposal represents a significant step in President Trump’s ongoing efforts to secure American technological infrastructure from foreign infiltration and espionage.
Addressing Hidden Threats in Testing and Certification
The FCC’s proposal extends beyond ownership disclosures to address concerns about testing laboratories and certification bodies potentially compromised by foreign adversaries. A Further Notice of Proposed Rulemaking focuses specifically on telecommunications certification bodies and equipment test labs, following disturbing discoveries about foreign influence in these critical oversight entities. The Commission’s investigations have revealed troubling connections between some testing facilities and hostile foreign governments, particularly China.
“While the agency has in recent years barred entities on the FCC’s Covered List from having their devices approved for use in the U.S. due to determinations that such devices pose national security risks, these new rules ensure that the accreditation and certification bodies and test labs are themselves not untrustworthy actors,” according to an FCC press release.
Particularly concerning is the FCC’s finding that “a number of labs potentially have deep ties to the Chinese Communist Party (CCP).” This revelation underscores the sophisticated and multi-layered approach China has taken to infiltrate America’s communications infrastructure, attempting to maintain access points for potential espionage and sabotage despite increased scrutiny. The Commission’s actions represent a critical effort to close these loopholes that threaten national security.
Building on Previous Security Measures
This latest proposal builds upon a series of previous FCC actions designed to protect American communications networks from foreign threats. The Commission maintains a “Covered List” of equipment and services determined to pose unacceptable risks to national security. Entities on this list are barred from having their devices approved for use in the United States. The FCC has previously restricted Chinese telecommunications companies including Huawei and ZTE from the American market, recognizing the security risks posed by their ties to the Chinese government.
“The U.S. Government has long recognized that foreign adversaries have been engaged in a widespread and coordinated effort to exploit, attack, and otherwise compromise the integrity of U.S. communications networks,” an FCC announcement of the rule stated.
Creating Transparency to Combat Foreign Influence
FCC Chairman Brendan Carr has emerged as a leading advocate for these enhanced security measures, emphasizing the critical importance of transparency in countering foreign threats. Chairman Carr has highlighted how current information collection efforts contain significant gaps that allow foreign adversaries to conceal their control over American communications entities. The new disclosure requirements aim to eliminate these blind spots, providing regulators and the public with comprehensive visibility into potential foreign adversary presence within U.S. networks.
“Sunlight is the best disinfectant,” Chairman Carr wrote, noting that current collections leave “gaps” that mask how Beijing and others might exert control.
The FCC is seeking public input on multiple aspects of the proposed rule, including appropriate definitions, reporting thresholds, and implementation strategies. The Commission is also considering establishing recurring disclosure requirements and creating a searchable database of foreign ownership information, further enhancing transparency and accountability in the telecommunications sector. These measures reflect President Trump’s commitment to prioritizing American security interests over foreign access to critical infrastructure.
A Comprehensive Approach to Communications Security
The FCC’s proposed rule represents just one component of a broader, multi-agency strategy to protect American communications networks from foreign adversaries. This approach recognizes that China and other hostile nations are engaged in sophisticated, multi-pronged efforts to penetrate and compromise U.S. communications infrastructure. By requiring detailed disclosures about foreign ownership and control, the FCC is equipping regulators with critical information needed to identify and mitigate potential threats before they can be exploited.
“Foreign adversaries like China are engaged in a multi-pronged effort to identify and exploit any vulnerabilities in our communications infrastructure,” Chairman Carr wrote in a statement.
The proposal has garnered support from congressional leaders, demonstrated by the House of Representatives passing the Foreign Adversary Communications Transparency Act. This alignment between the FCC and Congress highlights the growing bipartisan recognition of the serious threats posed by foreign adversaries to America’s communications infrastructure. As these rules move toward implementation, they promise to significantly enhance national security by exposing and addressing hidden foreign influence in this critical sector.
