FCC moves to ban Chinese labs from testing electronics sold in the US

[midian182]

Cutting corners: Not content with banning sales of high-end AI chips to China and imposing 145% tariffs on many imports from the country, the US government is now trying to stop companies from using Chinese labs to test electronic devices available in the United States.

FCC chairman Brendan Carr writes that before any electronic devices, such as smartphones or computers, can be imported or sold in the US, they must be tested at a lab to ensure compliance with FCC regulations. This testing covers the likes of power levels and operating frequencies.

The FCC's equipment authorization regulations are also designed to address national security issues, which include prohibiting banned devices from Huawei and ZTE from being approved for sale in the US.

Carr writes that there is a loophole in the process: the FCC had not required the labs that test these devices to be "trustworthy actors."

As an example, the FCC had allowed Huawei to operate its own test lab up until the agency took action last year. "Trusting a Huawei lab to certify that it is not approving prohibited Huawei gear does not sound like a smart bet," Carr wrote.

The agency wants to ban test labs from participating in the FCC's equipment authorization process if they are owned, controlled, or directed by entities on the FCC's "Covered List," which pose national security risks – such as Huawei. The restriction will also apply to foreign adversary governments, like China.

A vote on May 22 will finalize the rule. If it passes, the FCC would withdraw its recognition of a lab if it was determined to be tied to a prohibited company.

Reuters writes that the FCC is seeking comment on a separate proposal that will expand the testing prohibition to all labs in China and other foreign adversaries.

The FCC also seeks comment on ways to boost the capacity to test and certify imported electronics in the US.

The FCC estimates that around 75% of all electronics are tested at labs located inside China. According to its database, there are 168 certified test labs in China, 111 in the US, and 114 in Taiwan.

The FCC also plans to seek comment on obtaining the information necessary for the agency to publish a list of regulated entities that are subject to the control of a foreign adversary.

Apple, Samsung, Sony, and LG are just some of the companies selling products in the US that use Chinese labs for testing purposes.

Permalink to story:

FCC moves to ban Chinese labs from testing electronics sold in the US

 

[yRaz]

I have mixed feelings on this and not for the reasons many would assume. A friend of mine has PCBs made, assembled and tested in China for his business and it's fine for the most part. For him, it's about 90% cheaper to do all of that in China than in the US, but the failure rate for his parts made in China is a lot higher and he doesn't get any refunds from the plant that makes them because they were 'tested good when they left the factory'. The thing is, it's still cheaper for him to make stuff in China even with the lower yeilds than it is in the US. To avoid warranty claims on his products, which became an issue for awhile, he sends the parts to a second lab that isn't associate with the factory before assembling them into the final product. So there are labs in China capable of doing real testing. And, again, even with paying for extra testing and having lower yields it is still A LOT cheaper to make his product in China. He's saying that tariffs would have to hit around 400% for it to be cheaper to make his product in the US than in China.

 

[opckieran]

I have mixed feelings on this and not for the reasons many would assume. A friend of mine has PCBs made, assembled and tested in China for his business and it's fine for the most part. For him, it's about 90% cheaper to do all of that in China than in the US, but the failure rate for his parts made in China is a lot higher and he doesn't get any refunds from the plant that makes them because they were 'tested good when they left the factory'. The thing is, it's still cheaper for him to make stuff in China even with the lower yeilds than it is in the US. To avoid warranty claims on his products, which became an issue for awhile, he sends the parts to a second lab that isn't associate with the factory before assembling them into the final product. So there are labs in China capable of doing real testing. And, again, even with paying for extra testing and having lower yields it is still A LOT cheaper to make his product in China. He's saying that tariffs would have to hit around 400% for it to be cheaper to make his product in the US than in China.

I imagine companies in Japan, South Korea, Taiwan, India, Vietnam will be able to perform the same services, even if it is slightly more expensive. Bringing jobs back to America is a nice bonus that will be appreciated on the occasion it happens, but the most important thing is to quit doing business with the hostile CCP as soon as possible.

It sounds like your friend is getting hosed by Chinese factories anyways, even if he doesn't realize it. If he's experiencing far higher failure rates, and has to pay for those PCBs anyways, he's essentially rewarding that manufacturer for producing low-quality, defective products in bulk, reinforcing their manufacturing philosophy as well as the stigma against Chinese goods in general. Then, per his current production method, he gives additional business to another testing lab in China to weed out the chaff, which I'm sure the CCP appreciates even more, since they're looking to recoup costs on the industries they subsidize. It's a negative reinforcement loop. All the while there are certainly far more honest businesses in the US or elsewhere who are essentially being "punished" for having higher standards and being less wasteful.

 

[GABulldog]

Not saying all the testing labs here in the United States are the greatest but they can be scrutinized better if they were here and not in China. It don't only apply to China, it should apply to every country.

 

[AnilD]

The Huawei lab example really highlights how big the loophole has been—letting a company certify its own potentially banned products was a risky bet to put it mildly.

Now, with 75% of electronics currently tested there, the real challenge will be ramping up US and allied lab capacity without causing massive delays or added costs.

 

[dmatheson]

Industry complains about regulation and gets agencies to allow them to basically self-regulate (Boeing anyone?) All regulating agencies should make it a priority to have confirmation tests done by a non-interested or a less-interested party, whether that means sending electronics from China to Korea to the U.S. or Maine to Virgina to Nevada, there should be no crossover in interests. Otherwise, it is just useless red tape, which is what companies keep telling us (while their doors are blowing out at 16,000 ft.). Individual regulating employees should be rotated through vendors. When our company was under audit by the IRS for years (in the entertainment industry), they would rotate the IRS agents out because they said it's a lot harder for enforcers to enforce once they get to know the people they're policing.

 

[yRaz]

I imagine companies in Japan, South Korea, Taiwan, India, Vietnam will be able to perform the same services, even if it is slightly more expensive. Bringing jobs back to America is a nice bonus that will be appreciated on the occasion it happens, but the most important thing is to quit doing business with the hostile CCP as soon as possible.

It sounds like your friend is getting hosed by Chinese factories anyways, even if he doesn't realize it. If he's experiencing far higher failure rates, and has to pay for those PCBs anyways, he's essentially rewarding that manufacturer for producing low-quality, defective products in bulk, reinforcing their manufacturing philosophy as well as the stigma against Chinese goods in general. Then, per his current production method, he gives additional business to another testing lab in China to weed out the chaff, which I'm sure the CCP appreciates even more, since they're looking to recoup costs on the industries they subsidize. It's a negative reinforcement loop. All the while there are certainly far more honest businesses in the US or elsewhere who are essentially being "punished" for having higher standards and being less wasteful.

He sells one if those stupid infomercial products you see on cable TV, he gets no sympathy from me. His profit margin is like 80% even after waste and I won't name the product but you've probably seen one

 

[ScottSoapbox]

Brendan Carr is an incompetent political hack trying to make his FCC position more important than it has any right to be.

I can't believe we just traded all the woke nonsense for this new nonsense.

End all these useless bloated agencies, refund the tax payers, and make government small again.

 

[BadThad]

If you trust the CCP to do "American testing", you must be crazy. They certainly run what's called a dry lab, I.e. someone just filling out the paperwork with no actual testing completed. Common in China to save money.

During some analytical validation at work, I once busted a potential China supplier to my company doing it. I put a stake through their heart! No business for you.

 

[Vanderlinde]

Maybe the US knows more about a future and potential war. Who knows.

 

[TooQik]

If you take all politics out of this ruling/discussion, there's really only two things that should matter:

1. Any testing performed by any lab, regardless of location, should be equal in outcome if the testing is done to the FCC regulations/standards.

2. All test labs should be totally independent from the products they test.

Random independent audits on both tested products and company interests would ensure points 1 and 2 are met.