By David Shepardson
WASHINGTON, Sept 23 (Reuters) – The Republican chair of the US House Energy and Commerce Committee and the panel’s top Democrat unveiled bipartisan legislation to overhaul a federal process that blocks Chinese technology from entering the US market, as President Donald Trump prepares to meet Chinese President Xi Jinping on Thursday.
The bill would rewrite procedures governing the Federal Communications Commission’s “Covered List,” which has become a central tool in Washington’s efforts to restrict Chinese technology on national security grounds. The move comes amid a broader US-China struggle over trade and technology.
The legislation, first reported by Reuters, signals congressional concern about how the FCC is using its authority to restrict Chinese technology.
Representatives Brett Guthrie and Frank Pallone said in a joint statement the legislation would change how products are added to the FCC’s Covered List and require the agency to seek input from other government agencies before determining whether foreign technology poses an unacceptable national security risk.
“The current process for identifying and barring malicious foreign technology has worked in many cases, but lacks the transparency, consistency, and clarity needed to meet our long-term national security needs as technology rapidly advances,” the lawmakers said on Wednesday.
The Covered List has been used by the FCC to ban new Chinese drones, robots, routers, power inverters and other equipment from Chinese companies and has been one of the most significant parts of the Trump administration’s China policy. Reuters reported last month the FCC could use the list to ban imports of new models of Chinese optical transceivers that are crucial to data centers.
Trump and Xi are scheduled to hold talks in Washington on Thursday.
FCC Chair Brendan Carr did not immediately comment on the lawmakers’ proposal.
SUDDEN DISRUPTIONS
The proposal would also give Congress the ability to reverse FCC Covered List determinations and require input from the Commerce Department before determining specific foreign gear poses unacceptable risks to national security.
The FCC would be required to report to Congress at least seven days before placing any technology on its Covered List and make clear the FCC does not have to retroactively review or revoke any equipment authorization issued before a company or product was added to the Covered List.
That aims to offer “stability to American consumers and companies so that they do not face a sudden disruption by the placement of certain technology or equipment on the FCC’s covered list.”
In June, the FCC used the designation to ban the import of previously approved equipment from a group of Chinese manufacturers including Huawei, Dahua, ZTE and Hikvision.
The FCC’s actions aim to push Chinese gear out of technology supply chains and spur domestic manufacturing. “I don’t think it’s an exaggeration to say FCC has become the center of gravity for competitive actions towards China in this Trump term,” said Eric Sayers of the American Enterprise Institute in Washington.
(Reporting by David Shepardson; Editing by Sanjeev Miglani)
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