The US Federal Communications Commission (FCC) unanimously voted for a proposal that could significantly change the global electronics market. Under the initiative, all laboratories in China and Hong Kong will be prohibited from certifying devices intended for sale in the US.
This decision comes at a time when it is estimated that as many as 75% of devices intended for the American market are currently being tested in Chinese laboratories. The FCC considers such a level of dependence a potential security risk and seeks to reduce the influence of entities it designates as a threat to national security.
Major changes in the electronics certification process
Any device that uses radio frequency technology must go through an approval process before it can be sold in the US. That process involves testing at FCC-approved labs, and manufacturers have used Chinese facilities for years because of their proximity to manufacturing facilities and lower costs.
According to available data, out of a total of 591 laboratories recognized by the FCC around the world, as many as 126 are located in China and Hong Kong, with a large part concentrated in the Shenzhen region. Among them are subsidiaries of Western companies such as Intertek, SGS, TUV Rheinland and Bureau Veritas.
One of the key problems will be the cost and logistics of switching to alternative laboratories. While testing in China costs between $400 and $1,300, the same process in the U.S. can cost $3,000 to $4,000, which could increase overall production costs.
The FCC has previously banned a number of state-linked Chinese labs, but the new proposal extends the ban to all labs in China regardless of ownership. In parallel, additional measures are being considered that would limit the presence of Chinese telecom companies and infrastructure in the American market.
The decision now enters a public hearing phase that will last between 60 and 90 days, after which final regulations and a transition period for the industry are expected. If adopted, this measure could cause significant changes in the supply chain and the way electronic devices are certified on a global level, reports Tomshardware.