US-China Tech Divide Deepens Amid FCC Moves
The US-China tech split just took its sharpest turn yet. This time, the target is not a single company or product. It is the entire testing and connectivity infrastructure that ties the two economies together.
The US Federal Communications Commission voted unanimously to advance a proposal to bar all Chinese labs from testing electronic devices such as smartphones, cameras and computers for use in the US.
The scope is enormous. The agency says about 75% of all US electronics are tested in China and plans to adopt a streamlined approval process for devices tested in US labs or labs from countries not posing national security risks.
However, the FCC did not stop there. In a separate 3-0 vote, the commission advanced a proposal to bar China Mobile, China Telecom, and China Unicom from operating data centres in the US, and could ban telecoms carriers from interconnecting with companies on its national security “covered list”.
A Pattern of Escalating US-China Tech Split Moves
This week’s votes are the latest in a series of escalating actions. In October, the FCC moved to revoke the ability of HKT, a leading Hong Kong telecoms carrier and subsidiary of PCCW, to operate in the US. In December, it banned the import of all new models of Chinese drones, and last month it banned imports of new models of Chinese-made consumer routers, the boxes connecting computers, phones and smart devices to the internet.
The trajectory is unmistakable. Each month, another layer of Chinese technology is being pushed further from American infrastructure. Meanwhile, the FCC has been operating under the leadership of Brendan Carr, who has made national security its most visible priority.
The restrictions mark a significant acceleration in the decoupling of the US and Chinese technology sectors. This forced decoupling is driving the creation of parallel tech ecosystems: one dominated by the US and its allies, and the other by China and its regional partners.
The rivalry is accelerating a technical decoupling, leading to two distinct, potentially incompatible, global technology ecosystems and supply chains.
As a result, companies on both sides face rising costs. Testing electronics outside China is slower and more expensive. Operating data centre infrastructure away from Chinese carriers requires new investment. However, the FCC’s message is clear: the US-China tech split is no longer a trade argument. It is a national security reality, and the rules are changing fast.
