US FCC chair says China's Quectel, Fibocom may pose national security
risks
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[September 07, 2023]
By David Shepardson
WASHINGTON (Reuters) -Federal Communications Commission Chairwoman
Jessica Rosenworcel asked U.S. government agencies to consider declaring
that Chinese companies including Quectel and Fibocom Wireless pose
unacceptable national security risks, according to letters seen by
Reuters.
The Republican chair of the House of Representatives China Select
Committee, Mike Gallagher, and the top Democrat on the panel Raja
Krishnamoorthi, asked the FCC last month to consider adding to its
so-called "Covered List" the two companies that produce cellular modules
that enable internet of things (IoT) devices to connect to the internet.
Federal funds cannot be used to purchase equipment from companies on the
list, and the FCC will not authorize new equipment from companies deemed
national security threats.
Rosenworcel wrote the FBI, the Justice Department, the National Security
Agency, the Defense Department and other agencies on Sept. 1, forwarding
the request from the lawmakers.
She said in the previously unreported letters the FCC welcomes the
opportunity to collaborate "in addressing this threat, including
consideration of the inclusion of this equipment from Quectel and
Fibocom on the Covered List."
A U.S. spokesperson for Quectel said once modules are delivered "Quectel
customers own the data, and we have no access to any of the data
collected."
Remote device management "is achievable solely through the (original
equipment manufacturer) device management platform," the spokesperson
added, noting the company had recently retained security firm Finite
State to audit and test the security of its modules.
Fibocom did not immediately respond to a request for comment.
Rosenworcel told the lawmakers in a separate letter Tuesday "the issues
you raise with respect to connectivity modules merit continued
attention. To this end, the commission is examining additional steps it
should take to protect U.S. networks."
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Jessica Rosenworcel answers a question during an oversight hearing
held by the U.S. Senate Commerce, Science, and Transportation
Committee for the Federal Communications Commission (FCC), in
Washington, U.S. June 24, 2020. Jonathan Newton/Pool via REUTERS
She added the FCC can update the Covered List "only at the direction
of national security authorities."
The FCC previously placed 10 Chinese and one Russian company on the
Covered List including Huawei, ZTE, Hytera Communications Corp,
Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology.
The lawmakers warned that U.S. medical equipment, vehicles and farm
equipment using Chinese cellular modules could be accessed and
controlled remotely from China.
Noting they are typically controlled remotely and are the necessary
link between the device and the internet, the lawmakers said that if
China "can control the module, it may be able to effectively
exfiltrate data or shut down the IoT device."
The FCC has taken other steps to bar Chinese telecom companies from
U.S. networks. Last year, the FCC voted to revoke China Unicom's
U.S. unit, Pacific Networks and ComNet's authorization to operate in
the United States, citing national security concerns.
Rosenworcel said the list "provides all companies making purchasing
decisions clear signals about the security of products in the
marketplace."
The Chinese embassy in Washington did not immediately comment on
Wednesday, but last year it said the FCC "abused state power and
maliciously attacked Chinese telecom operators again without factual
basis."
(Reporting by David Shepardson; editing by Jonathan Oatis, David
Gregorio and Jamie Freed)
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