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The FCC’s March 2025 investigation asked whether Huawei and eight other companies were continuing U.S. operations in ways that circumvented existing restrictions. It was an inquiry—not a finding that Huawei had violated a blanket U.S. ban. As of August 18, 2026, the available public record cited here does not establish a final FCC finding against Huawei.
What the FCC announced
On March 21, 2025, the Federal Communications Commission said it had opened an investigation into the ongoing U.S. operations of nine entities on, or connected to, its national-security Covered List. The agency sent Letters of Inquiry and at least one subpoena to gather information before deciding whether further action was warranted. Its questions concerned current U.S. businesses and activities, products and services, corporate relationships, affiliates, and other companies that might be assisting the targets. The FCC’s announcement described possible attempts to make “end runs” around restrictions, including business conducted privately or on an “unregulated” basis.
The announcement did not publicly identify a specific Huawei transaction or establish that any target had completed a violation. The distinction matters: an investigation seeks evidence; a final enforcement finding requires a later agency action or other legal determination.
Which companies were included?
The FCC named nine entities or corporate groups. They were not all handset makers: the list included network-equipment and surveillance-equipment companies, international carriers, and U.S. operating entities.
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| Company or group | Relevant business category |
|---|---|
| Huawei Technologies Company | Telecommunications equipment |
| ZTE Corporation | Telecommunications equipment |
| Hytera Communications Corporation | Communications equipment |
| Hangzhou Hikvision Digital Technology Company | Video-surveillance equipment |
| Dahua Technology Company | Video-surveillance equipment |
| China Mobile International USA Inc. | International telecommunications services |
| China Telecom (Americas) Corp. | International telecommunications services |
| Pacifica Networks Corp. / ComNet (USA) LLC | Telecommunications services and U.S. operating entities |
| China Unicom (Americas) Operations Ltd. | International telecommunications services |
The companies and categories above are those identified in the FCC’s March 2025 announcement; the table is not a determination that each company engaged in circumvention.
What the FCC Covered List means—and what it does not
The Covered List identifies specified communications equipment and services that the FCC has determined pose an unacceptable risk to U.S. national security or public safety under applicable law. The FCC’s July 7, 2026 update included Huawei and ZTE telecommunications equipment; specified equipment from Hytera, Hikvision and Dahua; and certain international telecommunications services from China Mobile, China Telecom, Pacific Networks/ComNet and China Unicom. The list also contains other categories. See the FCC’s July 7, 2026 Covered List.
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A company’s presence on the list does not by itself make every activity by that company illegal in the United States. The effect depends on the particular equipment or service and the applicable rule, authorization, funding source or transaction. The FCC’s restrictions operate through several distinct mechanisms:
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- Federal subsidies: Separate rules restrict use of Universal Service Fund support to purchase or maintain covered equipment or services.
- Carrier authority: Section 214 authorization for certain international telecommunications services is distinct from authorization of a hardware model.
- Import, marketing and sale rules: Later actions can address additional equipment, previously authorized devices or components, with scope depending on the specific rule.
Those differences are why “the U.S. banned Huawei” is an imprecise shorthand. A restriction on a category of equipment, a subsidy-funded purchase or a carrier authorization is not automatically a ban on every product, service or private transaction involving a listed company.
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How the restrictions developed
The 2025 investigation followed years of separate FCC actions. In 2019, the FCC designated Huawei and ZTE as unacceptable national-security threats in the context of supply-chain and Universal Service Fund measures. The agency also pursued actions involving international-carrier authorizations, including China Mobile and China Telecom. In 2021 and 2022, the FCC added specified equipment and services to the Covered List. In November 2022, it barred authorization of new telecommunications and video-surveillance equipment from several covered manufacturers, including Huawei, ZTE, Hytera, Hikvision and Dahua.
In 2025 and 2026, the FCC continued updating its restrictions. Its October 2025 action addressed previously authorized devices and component-part risks, among other matters; the agency’s subsequent Covered List update was dated July 7, 2026. These measures address different regulatory questions and should not be treated as a single, all-purpose prohibition. The FCC’s account of the restrictions’ history appears in its May 22, 2025 statement, and its equipment-authorization action is in the October 28, 2025 order.
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What “circumventing restrictions” could involve
The FCC said it wanted to determine whether covered entities were continuing U.S. business in ways that evaded or worked around the restrictions. The announcement raised questions about operations that might be viewed as outside a particular prohibition, including private business or activity through other companies. It did not publicly prove that any of the following occurred:
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- Operating through subsidiaries, affiliates, distributors or U.S. partners.
- Providing services that a company argues are outside the wording of an FCC order.
- Supplying components or services through another manufacturer.
- Maintaining commercial activity after a carrier authorization was revoked.
These are possible lines of inquiry, not established conduct. The FCC’s public announcement does not identify which particular transactions, intermediaries or business lines prompted its questions.
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What happened with China Mobile?
Reuters reported on June 17, 2025, that the FCC said China Mobile International USA could face a fine for failing to answer questions in the investigation. That report indicates a possible enforcement issue over cooperation with the inquiry; it does not establish that a fine was imposed or prove a substantive violation of an equipment, service or authorization restriction. The distinction between the issues is important: Reuters’ report concerns potential consequences for noncooperation, not a final finding that all allegations were substantiated.
What businesses should check
Organizations that use, buy or support telecommunications or surveillance equipment should assess the specific product and transaction rather than rely on a company name alone. Relevant questions include:
- Is the equipment or service covered by the current FCC list?
- When was the model authorized, and do rules applicable to previously authorized devices affect it?
- Does the purchase or maintenance involve Universal Service Fund or other federal support?
- Does the product contain a covered component, or is the supplier an affiliate or intermediary of a listed entity?
- Do maintenance, software support or replacement parts raise a separate compliance issue?
- Do contracts or applicable supply-chain-security programs require replacement of equipment?
The answer can vary with the product category, authorization date, funding and business structure. Organizations should consult the applicable FCC rule and obtain qualified legal or regulatory advice before making procurement or replacement decisions.
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Status as of August 18, 2026
The FCC’s July 7, 2026 Covered List continued to include Huawei, ZTE, the named Chinese carriers and specified equipment from other companies in the investigation. The public sources cited here confirm the investigation’s launch and the China Mobile cooperation dispute, but do not establish a final public FCC determination that Huawei—or all nine targets—violated the underlying restrictions. Nor do they establish the investigation’s complete outcome for every target. Covered List inclusion and the existence of an investigation are not substitutes for an entity-specific final finding.
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