Senate Commerce Committee chair Ted Cruz has urged U.S. Director of National Intelligence Tulsi Gabbard to investigate whether China is covertly trying to block Congress from extending the authority to auction wireless spectrum.
In 2023, the Federal Communications Commission lost its broad authority from Congress for wireless spectrum sales, and lawmakers are currently considering legislation to authorize new auctions to accommodate the growing demand for wireless services.
Cruz expressed concern in a letter, stating that China aims to secure global leadership in telecommunications and is working to establish a technological foundation for the next generation of global communication technologies.
The Chinese embassy responded by claiming that while the U.S. government alleges security risks posed by Chinese companies like Huawei, it has failed to provide evidence. They assert that when the U.S. cannot compete fairly, it resorts to illegal and unfair tactics to hinder the progress of Chinese firms.
Cruz is working to attach spectrum auction authority to broad tax legislation that Congress is expected to consider in the coming months. He noted that China has announced plans to open additional spectrum bands for future 5G and 6G wireless use, while the U.S. is still deliberating its next steps.
He emphasized that freeing up spectrum for commercial use is crucial not only for economic growth but also for maintaining global leadership. Cruz projected that a new spectrum auction could raise $100 billion or more, warning that if the U.S. falls behind, Huawei could establish the backbone of future global communication networks through which significant economic and governmental traffic will flow.
Huawei, the world's largest telecommunications equipment maker, has not yet responded to requests for comment.
The FCC is set to re-auction spectrum to secure nearly $3.1 billion for U.S. telecom companies to remove equipment from Huawei and ZTE. Recently, the FCC Chair announced investigations into nine Chinese companies, including Huawei and ZTE, to determine if they are attempting to evade U.S. restrictions. This action is part of a broader trend of measures taken by Washington against Chinese telecom and technology firms, with the FCC previously banning these companies from providing telecom services in the U.S. due to national security concerns.