The U.S. Federal Communications Commission (FCC) has initiated an FCC probe over six Chinese electronics firms and internet service providers. The inquiry will determine if these firms are evading previous FCC prohibitions and continuing to operate in the United States by private or unregulated means.

The FCC has ordered some Chinese firms, such as Huawei Technologies Co. and ZTE Corp., to cut or halt their business in the U.S. due to national security concerns. These firms are significant players in the telecommunication industry, providing network equipment and services to carriers globally. FCC Chairman Brendan Carr further stated that some of these firms are attempting to circumvent the regulations and carry on their business in the U.S. market.

Scope of the Inquiry
The FCC probe will focus on Huawei and ZTE and three other electronics manufacturers that make communications gear and associated products. The FCC is also investigating several Chinese telecom carriers, including China Mobile, China Telecom, and China Unicom. The carriers have faced increasing regulatory scrutiny over the years due to security concerns.

The Covered List was established by the FCC in 2022. It includes companies that manufacture and sell products and services that are a potential threat to national security. Any company that is on this list cannot sell any of its products in the U.S. Despite all these regulations, there are some indications that these companies are still active in the country in different forms.

Previous Actions Taken Against Chinese Enterprises
Regulatory measures against such companies have become increasingly frequent in recent times. In 2019, the FCC ordered China Mobile to shut down its phone operations in the U.S. China Telecom and China Unicom were ordered to do the same in 2021 and 2022, respectively. In December 2023, the U.S. Commerce Department ordered China Telecom's remaining operations, including its cloud service and peering systems, to be shut down. Peering refers to the technique of how internet carriers exchange data traffic, which is necessary to remain connected.

Objectives of the Probe
The FCC probe is to determine whether these Chinese firms are still operating in the U.S. in violation of prohibitions against them. Authorities will also verify whether other firms are assisting them to remain. The agency has already issued several question letters and at least one subpoena to gather information.

This investigation is being carried out under the leadership of the FCC's Council on National Security. The council exists to oversee national security threats in the telecom sector. They are composed of eight members from various bureaus and offices of the FCC. It is their work to ensure that the U.S. supply chain is secure and also to protect customer information

Effects and Next Steps
The outcome of this probe could lead to stricter enforcement actions against companies that fail to comply with U.S. regulations. If evidence confirms that these firms are circumventing restrictions, the FCC may impose additional penalties or expand its list of prohibited entities. The investigation underscores the U.S. government’s ongoing efforts to safeguard national security by tightening regulations on foreign tech firms operating within the country.

As China and America continue to have rising tensions between them, there is sure to be scrutiny of Chinese telecom and technology firms. The FCC's recent move is an indication that they are still determined to ensure that unauthorized parties cannot remain in the American market through loopholes.