The US Federal Communications Commission (FCC), America’s telecommunications regulator, will vote on November 19 on a proposal to ban Chinese telecommunications companies from directly accessing American phone numbers, citing national security concerns.FCC Chair Brendan Carr stated on October 28 that the new rules would require national security-focused certification and strengthen authorization processes before entities gain access to phone numbers. The FCC announced on Thursday, October 29, 2026, that the vote on November 19 will specifically target IP-enabled service providers, including China Mobile, China Telecom, and China Unicom, preventing them from direct access.The FCC also plans to prohibit IP-enabled service providers that use equipment from companies like Huawei or ZTE, which pose national security risks. Additionally, the FCC stated it could revoke direct number authorizations for Chinese companies that present national security risks and will prevent all Chinese laboratories from testing US electronics by December 2028.On October 27, John Moolenaar, chair of the House Select Committee on China, wrote to FCC Chair Brendan Carr, urging the adoption of proposed rules. These rules would restrict Section 214 authority for entities linked to foreign adversaries, tighten the approval process, and prohibit certain interconnection agreements.The US has been preparing to ban Chinese telecommunications companies from directly accessing American phone numbers due to national security concerns. The FCC had previously blocked China Mobile, China Telecom, and China Unicom from providing international telecommunications services in the United States.In late 2024, Washington reported that a Chinese state-sponsored cyber espionage group named Salt Typhoon had stolen consumer call records and US call data, infiltrating American telecommunications and telecommunications infrastructure firms. The FBI stated in 2026 that threats from Salt Typhoon were “still ongoing.”In July 2026, the FCC added California-based DigitalSystem Technology to its list of companies posing national security risks, citing its ties to Chinese telecommunications firms and its ownership by Chinese nationals. In August 2026, a US House panel raised new concerns about the continued presence of Chinese telecommunications companies in the US network ecosystem, warning they could pose significant cybersecurity and national security risks.In October 2023, Nepal’s telecommunications market was affected by tensions between the US and China, which threatened the expansion of 5G mobile networks in the country. Nepal Telecom aims to use equipment supplied by Huawei and ZTE for 5G trials. However, Nepal Telecom had to postpone its 5G trials due to delays by the Nepal Telecommunications Authority in granting permission to import equipment for the trials.Foreign investors in Nepal’s telecommunications sector can seek investments subject to Nepal’s foreign investment laws, sector-specific restrictions, company registration requirements, and NTA licensing rules. Foreign investors must invest a minimum of Rs 50 million (USD 378,000). Up to 80% ownership is permitted in basic telecommunications services, and 100% in value-added services.The long-term impact of the FCC’s decision on the US operations of Chinese telecommunications companies remains unclear. The Chinese Embassy has not yet formally responded to the proposed US restrictions. US officials have also not yet provided precise information on how many Americans were affected by the Salt Typhoon cyber espionage campaign.
Background
- The US has been preparing to ban Chinese telecommunications companies from directly accessing American phone numbers due to national security concerns.
- The FCC had previously blocked China Mobile, China Telecom, and China Unicom from providing international telecommunications services in the United States.
- In late 2024, Washington reported that a Chinese state-sponsored cyber espionage group named Salt Typhoon had stolen consumer call records and US call data, infiltrating American telecommunications and telecommunications infrastructure firms.
- The FBI stated in 2026 that threats from Salt Typhoon were "still ongoing."
