प्रकाशित · Maithili

FCC Lab Restrictions: What Foreign Founders Operating in China Need to Know

China's Ministry of Commerce responds to new FCC rules banning Chinese testing labs from December 2028, warning of higher costs and supply chain disruptions. Foreign founders in China should prepare for compliance and cost impacts.

FCC Moves to Restrict Chinese Testing Labs

On October 29 (US Eastern Time), the US Federal Communications Commission (FCC) voted to adopt restrictive measures on testing laboratories. Starting December 1, 2028, the FCC will prohibit authorized testing laboratories, telecommunications certification bodies, and laboratory accreditation bodies located in China and other so-called "non-reciprocal economies" from conducting FCC-related testing, certification, or accreditation activities. The Chinese Ministry of Commerce (MOFCOM) spokesperson addressed these developments in a recent press briefing.

MOFCOM's Response: Strong Opposition

The MOFCOM spokesperson expressed strong dissatisfaction and firm opposition to the FCC's decision. According to the spokesperson, the FCC has repeatedly introduced China-related restrictive measures, ignoring China's repeated representations and contradicting important consensus reached by the two heads of state. These actions are said to seriously harm the interests of China and other trading partners, undermine the stability of China-US economic and trade relations, and disrupt global supply chains. The spokesperson noted that China has already taken countermeasures in response.

The Role of Chinese Testing Labs in Global Trade

Chinese testing laboratories are described as an important part of the global testing and certification system, providing cost-effective assurance for the production and trade of communications electronics, smart manufacturing, and related products. The spokesperson argued that the US side is ignoring the objective laws of global economic development and industrial division of labor, using administrative means to intervene in market choices, and forcing so-called "testing reshoring." This, according to MOFCOM, will raise testing costs for companies, lengthen product delivery and iteration cycles, and ultimately harm the interests of US businesses and consumers.

Impact on Foreign Founders Operating in China

For foreign founders with companies in China, especially those in electronics, telecommunications, or smart manufacturing, the FCC's new rules could have significant implications. If your products require FCC certification, you may need to arrange for testing and certification through laboratories outside of China starting in December 2028. This could increase costs and extend timelines for product launches in the US market. It is advisable to review your supply chain and compliance strategies well in advance.

What Should Foreign Founders Do?

• Assess your product certification needs: Determine if your products require FCC certification and identify alternative testing facilities in countries not affected by the restrictions.
• Budget for higher costs: Testing outside China may be more expensive and time-consuming; factor this into your pricing and product development plans.
• Explore mutual recognition agreements: China has previously proposed negotiating bilateral mutual recognition agreements, but the US has shown a negative attitude. Stay informed about any developments.
• Monitor policy updates: The situation may evolve; keep an eye on official announcements from MOFCOM and the FCC.
• Diversify supply chains: Consider sourcing components and testing services from multiple regions to mitigate risks.

China's Position and Next Steps

MOFCOM reiterated that China remains open to resolving issues through consultation and hopes the US will heed industry calls, respect market principles, and work with China to immediately withdraw the measures. If the US insists on going its own way, China will take further necessary measures to firmly safeguard its legitimate rights and interests. The spokesperson also noted that China has repeatedly proposed discussions on a "bilateral mutual recognition agreement," but the US attitude has been extremely消极 and negative.

Practical Guidance for Foreign Founders

Foreign founders operating in China should be aware that regulatory changes like these can affect cross-border trade and compliance. While the new FCC rules do not directly regulate companies registered in China, they impact the certification process for products exported to the US. It is crucial to maintain flexibility and stay informed about both Chinese and US regulations. China continues to emphasize its commitment to opening up and maintaining stable economic relations, but foreign founders should prepare for potential disruptions.

Conclusion

The FCC's decision to restrict Chinese testing labs from 2028 poses challenges for businesses reliant on FCC certification. Foreign founders in China should proactively assess their certification strategies and consider alternative arrangements. For assistance with company registration, compliance, and navigating regulatory changes in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.