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FCC's China lab ban tightens US tech decoupling

FCC's China lab ban tightens US tech decoupling
China · 2026
Photo · Mei-Ling Chen for Asian Examiner
By Mei-Ling Chen China Correspondent Oct 12, 2026 4 min read

The US Federal Communications Commission (FCC) is set to vote on a rule that would bar all laboratories in China from testing smartphones, cameras, computers, and other electronic devices destined for the US market. The proposed ban, scheduled for a vote on October 29, would take effect on December 1, 2028, and would also apply to labs in countries that do not grant reciprocal treatment to US-based testing facilities.

This move is the latest in a series of US measures—including tariffs, export controls, and additions to the Covered List—that aim to reduce American dependence on Chinese supply chains. Observers see it as another push for Washington's "China plus one" strategy, encouraging manufacturers to diversify production bases beyond China.

FCC Chair Brendan Carr highlighted the disparity in testing locations, noting that less than 4% of electronic devices are tested in US labs, while 82% were tested in China in 2025. "President Trump has revolutionized America's approach to the world by putting reciprocity at the heart of our international commercial relations," Carr said in April when the rule was first proposed. He added that over 75% of testing occurs in countries that have refused reciprocal treatment for US-based labs.

Beijing's countermeasures

China has already responded. According to Chinese media, Beijing announced three countermeasures on August 5, and the Ministry of Commerce warned of further action if Washington introduces new restrictions. These measures include a rigorous case-by-case review of drone exports to the US, with no licensing facilitation; suspension of US-based certification bodies' authorization to conduct follow-up factory inspections under the China Compulsory Certification (CCC) system; and a ban on Chinese organizations and individuals dealing with Compliance Testing LLC, an Arizona-based firm that Beijing claims supported the FCC's actions.

The planned ban caps a series of FCC moves against Chinese labs and devices since May 2025, when the agency adopted rules barring labs controlled by foreign adversary governments. Starting in September last year, it withdrew or denied recognition of 23 such labs. In December, the FCC banned imports of new models of Chinese drones, followed by Chinese-made consumer routers in March 2026. In April, it proposed phasing out labs in countries without mutual recognition agreements (MRAs) with the US, a reciprocity requirement it had dropped in 2015. In June, it banned imports of more equipment from Chinese manufacturers including Huawei and ZTE, and in July, it barred US sales of devices containing key hardware from Chinese firms deemed national security risks.

Liu Zhenqi, a former professor at the People's Liberation Army (PLA) Logistics Academy, argues that the rule "uses regulation to shut Chinese third-party testing firms out of the US market. It artificially drives up the cost of compliance for Chinese electronics makers selling overseas." He criticizes the lack of concrete evidence, saying, "Washington has banned these firms across the board in the name of national security without offering any concrete evidence. This is really about stretching the idea of security to justify technological protectionism."

Liu warns that if the rule passes, Chinese electronics makers will face longer testing times and higher costs, which will ultimately be passed on to US companies and consumers through higher prices, fewer choices, and less efficient supply chains. He notes that while there is a two-year transition period, China must recognize that US containment efforts have moved beyond core sectors like chipmaking and now reach into testing, certification, and standards.

A Henan-based writer using the pen name "Gummies" says cross-border e-commerce sellers and small electronics factories, with thin profit margins, will feel the pain first. He points out that a basic test costs US$400 to US$1,300 in China but US$3,000 to US$4,000 in a US lab. Shipping samples abroad takes two weeks, and with lab queues and retests, a full round can take more than a month. "A month or two of delay can wipe out sales of short-lived consumer gadgets and force some firms out of the US market," he says.

On September 8, 2025, the FCC took its first action under the "Bad Labs" rules, beginning proceedings to withdraw recognition from seven labs it said the Chinese government owned or controlled, including CVC Testing, TÜV Rheinland-CCIC Ningbo, and UL-CCIC. It also said the recognition of four others, including the China Academy of Information and Communications Technology, had expired and would not be renewed.

The move is part of a broader US strategy to decouple from China in technology, a trend that has implications for the entire Indo-Pacific region. As China's hybrid EV surge widens EU trade rift, and with US curbs on aircraft parts to China, the testing ban adds another layer to the escalating tech rivalry. Meanwhile, Samsung's $560K bonuses highlight the competition for talent, and Anduril's $6.6B bet underscores the defense dimension of the decoupling.

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