April 30, Kathmandu – A new proposal related to technology trade introduced by a US regulatory agency has drawn strong objections from China. Particularly, the plan to restrict Chinese laboratories from testing electronic devices for the American market is expected to negatively impact bilateral trade relations, prompting Beijing to warn of countermeasures. The proposal, put forward by the US Federal Communications Commission (FCC) on Thursday, would affect devices ranging from smartphones to cameras if approved.
According to FCC data, approximately 75 percent of certified devices currently used in the US are tested in accredited laboratories located in China, indicating the proposal could have widespread implications. Responding to the decision, China’s Ministry of Commerce issued a warning that this move would “seriously undermine the international economic and trade system.” The ministry also indicated that if the US remains firm on its position, China will take necessary steps to protect the legitimate rights and interests of its enterprises.
China has frequently accused the FCC of targeting Chinese companies and products with restrictive measures. The ministry claims such actions jeopardize the hard-earned trade stability established between the two countries and run counter to high-level agreements. The FCC, however, maintains that the proposal is designed with “national security priorities” in mind. Previously, rules were implemented to limit labs owned or controlled by foreign adversaries.
The new proposal aims to revoke recognition of laboratories located in countries without reciprocal trade agreements with the US. According to the FCC, no such agreement exists with China. Should the proposal be enacted, devices tested and certified by Chinese laboratories would be phased out of the US market within two years. This development signals additional strains on supply chains, international trade practices, and US-China relations. Analysts view this as not only a trade issue but also another phase in strategic competition.
