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- The FCC is considering a ban on "cellular modules" manufactured in China
- These modules send and receive communications on mobile networks
- The ban could effect devices of all kinds across IoT, industrial controls, and cars
The Trump administration is considering adding Chinese “cellular modules” to its list of electronics that could be banned over national security concerns.
Previously, the Federal Communications Commission (FCC) had imposed a ban on Chinese labs testing products bound for the US.
Now, the FCC has included drones and routers in expansions to the ban, with the agency mulling over whether to include “cellular modules” in the ban, the Financial Times reports.
Ban could cause major supply chain disruptions
President Donald Trump is today meeting his Chinese counterpart Xi Jinping in Beijing, in a seismic meeting where the pair 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 electronics, from Internet of Things (IoT) devices such as those included in smart home tech, medical systems, cars, and industrial control systems.
The potential ban of Chinese cellular modules is likely strategically timed, aimed at putting pressure on China and Xi to contribute productively during the meeting with President Trump.
The Trump administration has seen devices and software manufactured in China as a potential national security risk, gradually stepping up bans and restrictions on products manufactured in China from being used by government contractors and federal agencies. Now, that ban could extend to the domestic market.
Speaking to FT, Charles Parton, a retired UK diplomat and Senior Associate Fellow at the Royal United Services Institute (RUSI), who is an expert on modules, said that up to 70% of the global market for cellular modules 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 periodically updated in order for them to function and remain secured against threats. However, the FCC fears that these subsequent updates could result in covert surveillance software or harmful malware being installed on devices.
Should the ban go ahead, the fallout for the cellular module supply chain would be enormous as manufacturers seek alternative sources. These sources would likely be unable to cope with the sudden increase in demand, leading to prices for cellular modules to skyrocket, subsequently increasing the costs of goods themselves for consumers.
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