- The FCC is considering banning “cellular modules” made in China
- These modules send and receive communications on mobile networks.
- The ban could affect devices of all types in IoT, industrial controls and automobiles.
The Trump administration is considering adding Chinese “cellular modules” to its list of electronic products that could be banned on national security grounds.
Previously, the Federal Communications Commission (FCC) had imposed a ban on Chinese laboratories testing products destined for the United States.
Now, the FCC has included drones and routers in the ban expansions, and the agency is mulling whether to include “cellular modules” in the ban, the Financial times information.
Ban could cause major supply chain disruptions
President Donald Trump will meet his Chinese counterpart Xi Jinping in Beijing today, in a momentous meeting where the two 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 on 4G and 5G networks. These devices are included in a wide range of electronic products, from Internet of Things (IoT) devices such as those included in smart home technology, medical systems, automobiles, and industrial control systems.
The potential ban on Chinese cellular modules is likely strategically timed, with the goal of pressuring 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 increasing bans and restrictions on the use of Chinese-made products by government contractors and federal agencies. Now, that ban could be extended to the domestic market.
talking to FOOTCharles Parton, a retired UK diplomat and senior associate fellow at the Royal United Services Institute (RUSI), a module expert, said 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 must be updated periodically to function and remain protected from threats. However, the FCC fears that these later updates could lead to the installation of covert surveillance software or harmful malware on devices.
If the ban goes ahead, the consequences for the cellular module supply chain would be enormous as manufacturers look for alternative sources. These sources would likely be unable to cope with the sudden surge in demand, causing prices for cellular modules to skyrocket and subsequently increasing the costs of the goods themselves for consumers.
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