(Yicai) May 11 -- The Federal Communications Commission's recent ban is not a straightforward regulatory compliance measure. Framed in the language of national security, it is an act of industrial suppression and a broadening of Washington's technology decoupling strategy from blocking Chinese products to contesting control over international standard frameworks.

On April 30, the FCC voted unanimously to pass two restrictive measures: a proposal to strip testing and certification recognition from labs in countries that have not signed mutual recognition agreements with the United States, and a ban on entities listed on the Covered List from operating telecommunications businesses in the US.

The move is the FCC's most sweeping crackdown on Chinese testing labs in nearly a year and carries three layers of policy significance.

The first one is a certification blockade. The FCC intends to exclude Chinese testing and certification labs, including those in Hong Kong and Macao, entirely from its equipment authorization system. This means that Chinese labs will no longer be able to provide FCC testing and certification services for radio-frequency electronic products entering the US market, including smartphones, computers, routers, Internet of Things devices, and Bluetooth equipment.

The second layer goes beyond the certification domain to the clearance of telecoms services provided by Chinese firms. In fact, the ban will effectively remove China Telecommunications, China United Network Communications Group, and other Chinese telecoms companies from US telecommunications and data center operations.

Third, the FCC created a fast-track approval pathway for labs of companies from MRA countries, substantially streamlining their certification process. The establishment of this 'green channel' intends to encourage the testing and certification industry to return to the so-called trusted countries and win over US allies to contain China.

The ban also has an immediate impact on the testing and certification industry itself. For instance, a full FCC compliance test conducted by the terminal labs of the China Academy of Information and Communications Technology's China Telecommunication Technology Laboratory costs about CNY100,000 (USD13,700), with a turnaround of seven to 10 business days. In comparison, an equivalent test at a US firm, such as Underwriters Laboratories, costs over USD36,000 and takes 20 to 25 business days. The competitive advantage held by Chinese labs is clear.

The ban would force a sharp contraction in their business or compel them to establish new facilities in the US, Japan, South Korea, or elsewhere.

At the supply chain level, international brands and contract manufacturers that rely on Chinese lab certifications must identify alternative channels. Global testing and certification capacity cannot fill the gap in the short term, with downstream effects expected to ripple through consumer electronics, automotive electronics, industrial controls, and medical equipment, adding further uncertainty to an already stressed global electronics supply chain.

The ban proposal remains in the public comment period, as the formulation of the final rules still needs to go through legal procedures. China's Ministry of Commerce said it strongly opposes the ban and that it will take the necessary measures to protect the legitimate rights and interests of Chinese enterprises.

The author of this article is Zhang Haiyan, professor and head of the United States-Mexico-Canada Economic and Trade Cooperation Research Institute at Zhejiang Financial College.

Editor: Futura Costaglione