Senate Commerce Committee Chair Ted Cruz has called on U.S. Director of National Intelligence Tulsi Gabbard to investigate whether China is covertly working to prevent Congress from extending authority for auctioning wireless spectrum.
The Federal Communications Commission (FCC) lost its broad spectrum auction authority in 2023, and lawmakers are now considering new legislation to approve future auctions. Cruz, in a letter obtained by Reuters, emphasized that China is aggressively positioning itself as a leader in global telecommunications and could be attempting to undermine US efforts to reestablish spectrum sales.
“China is actively working to capture global leadership in this area and ensure the next generation of global telecommunications technologies live and work on a technological backbone of their making,” Cruz wrote
In response, the Chinese embassy dismissed US concerns, stating, “The U.S. government keeps saying that Chinese companies such as Huawei pose security risks, but it can't produce any evidence... The truth is, when the U.S. cannot lead in normal competition, it uses illegal and unfair means to obstruct the development of Chinese companies.”
Cruz reiterated on Tuesday that he is working to attach spectrum auction authority to broad tax legislation that Congress is expected to review in the coming months. Meanwhile, China has announced plans to open additional spectrum bands for future 5G and 6G wireless use, while the US remains in legislative discussions.
“Freeing up spectrum for commercial use in the United States is not just important for our economic growth; it is critically important for our global leadership,” Cruz noted. He suggested that a new spectrum auction could generate over $100 billion in revenue
“If we do not catch up and lead, it will be Huawei that creates the backbone of tomorrow’s global communication networks, through which much of the world’s economic and government traffic will flow,” he warned.
The FCC is set to re-auction spectrum to provide nearly $3.1 billion to help US telecom companies remove equipment from Chinese firms Huawei and ZTE. Additionally, FCC Chair Brendan Carr recently announced an investigation into nine Chinese companies, including Huawei, ZTE, China Mobile, and China Telecom, to determine whether they are attempting to bypass US restrictions
This move is part of a broader US crackdown on Chinese telecommunications and technology firms. The FCC has previously barred multiple Chinese companies from offering telecom services in the United States, citing national security concerns.