By HU Dingkun & SUN Jin
The U.S. Federal Communications Commission (FCC) announced on September 8 that it has initiated proceedings to revoke recognition for seven Chinese testing laboratories. It also confirmed that accreditation for four other Chinese labs has expired and will not be renewed.
PHOTO: VCG
In May, the FCC introduced new rules barring any Chinese laboratory linked to entities on its Entity List from certifying devices for the U.S. market. FCC Chair Brendan Carr stated, "Foreign adversary governments should not own and control the labs that test the devices the FCC certifies as safe for the U.S. market."
Under U.S. regulations, all radio-frequency-emitting electronic devices must be certified by an FCC-accredited lab before entering the American market. Currently, 175 Chinese labs hold such accreditation—more than in the United States itself—and around 75% of FCC-recognized testing is conducted in China.
While the number of affected labs is small, the FCC is seeking public input on whether to extend the ban to all Chinese laboratories and those in other countries designated as "foreign adversaries." This raises concerns about a potential full-scale revocation of Chinese labs’ accreditation.
Security Rationale or Industrial Reshoring?
The U.S. government has consistently framed Chinese technology as a national security threat—from 5G infrastructure to TikTok. However, security concerns alone do not fully explain the FCC’s actions against Chinese testing labs.
A May submission from the Foundation for Defense of Democracies (FDD), a U.S. think tank, argued that China's integration into global telecom certification strengthens its manufacturing dominance. Proximity between factories and testing facilities allows rapid prototype iteration, reducing lead times and costs. This clustering effect reinforces China’s central role in electronics production and supply chain control.
Earlier, in January, Michael Schafer, CEO of U.S.-based Compliance Testing, urged the FCC and former President Trump to shift the $28 billion certification services market from China to the United States, calling it a step toward repatriating U.S. manufacturing.
These developments suggest that the FCC’s move is less about security and more about dismantling China’s competitive advantages in high-tech manufacturing and accelerating the reshoring of critical industries to the U.S.
Global Supply Chain Disruptions Ahead
The FCC’s actions are poised to disrupt global electronics supply chains. Certification plays a vital role in product development cycles, directly affecting time-to-market, cost efficiency, and globalization.
Manufacturers exporting to the U.S. that rely on Chinese labs will now face logistical challenges and higher costs as they transfer testing operations. A May analysis by Switzerland-based CTOL Digital Solutions found that non-Chinese labs were already increasing quotes by 15–30% ahead of the new rules.
For U.S. consumers, these changes could translate into higher retail prices. Non-Chinese labs may also lack the capacity to absorb the surge in demand, leading to testing backlogs, delayed product launches, and potential shortages.
The FDD acknowledged the likely rise in testing costs and temporary inventory bottlenecks, noting that businesses would likely pass these expenses to consumers. Small manufacturers, for whom certification represents a larger share of unit costs, will be especially vulnerable.
Economic Realities vs. Policy Decisions
China’s leadership in electronic testing stems from decades of industrial development and market evolution. Locating certification near production hubs offers clear logistical and economic benefits for most manufacturers.
By disregarding these market fundamentals, the FCC is forcing companies to operate against efficiency principles. Ultimately, the resulting cost increases and delays will fall on American consumers, undermining the very market stability the agency claims to protect.
Editor | SONG Ziyan
Supervisor | FANG Linlin