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US communications regulator to create council to counter China technology threats

March 12, 2025
in Finance
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US communications regulator to create council to counter China technology threats
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The Federal Communications Commission is creating a national security council to bolster US defences against Chinese cyber attacks and help it stay ahead of China in critical technologies, such as artificial intelligence.

Brendan Carr, the new FCC chair, said he was establishing the council to step up the agency’s focus on the “persistent and constant threat from foreign adversaries, particularly the Chinese Communist party”.

“These bad actors are always exploring ways to breach our networks, devices and technology ecosystem. It is more important than ever that the FCC remain vigilant and protect Americans and American companies from these threats,” he said.

He added that because the threats cut across sectors that the commission regulated, “it is important that the FCC’s national security efforts pull resources from a variety of FCC organisations”.

Carr said the council would have a number of aims, including mitigating US vulnerability to cyber attacks, espionage and surveillance by hostile states and reducing supply chain dependence on adversaries.

He added it would also try to ensure that the US “wins the strategic competition with China over critical technologies”, including 5G and 6G, AI, satellites and space, quantum computing and autonomous systems.

The council will be led by Adam Chan, a lawyer who previously worked for the House of Representatives’ China committee, which was created by Congress in 2023 to focus on security threats from Beijing. 

While the FCC has traditionally focused on regulating telecom providers, its role has expanded as the battle between Washington and Beijing over technology has intensified.

The commission has jurisdiction over issues as wide-ranging as the certification of drones to the regulation of critical subsea communications cables — just two areas where the US has become alarmed by growing national security threats from China.

An early focus is expected to be Salt Typhoon, a months-long Chinese attack on US telecoms networks that allowed hackers to target unencrypted phone calls that former US national security adviser Jake Sullivan said was “unique” in terms of its sheer scale.

The FCC is one of several agencies involved in helping telecoms companies strengthen their networks and stop intrusions.  

The creation of the council is the latest effort by the US government to take a more holistic and focused approach on a wide range of threats from China by bringing in resources from different agencies.

In 2021, the CIA created a “China Mission Center” to increase the agency’s focus on Beijing. The state department created a similar structure known as “China House”. At the commerce department, the bureau of industry and security has stepped up efforts to make it harder for China to obtain critical US technology, particularly in the areas of AI and chips.

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The new council is expected to shift the FCC’s focus from individual Chinese entities to a more sectoral approach. Some critics of American efforts to tackle threats from Beijing have pointed to loopholes that allowed it to circumvent punitive actions, such as a Chinese group changing its name.

“This council demonstrates how Chair Carr wants to elevate the China agenda under his leadership and envisions the FCC being a frontline tool in the China competition akin to what BIS has become,” said Eric Sayers, an Asia security expert at the American Enterprise Institute think-tank.

Sayers said the council would counter China in less traditional areas, such as the cloud, AI data centres, drones, connected vehicles, the “Internet of Things” devices and consumer electronics.

The Chinese embassy did not respond to a request for comment.

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