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

A ChinaMNC business guide for foreign founders on the FCC's new lab restrictions, China's response, and practical implications for testing, certification, and compliance when operating a company in China.

FCC Moves to Restrict Chinese Testing Labs

On October 29 (US Eastern Time), the US Federal Communications Commission (FCC) voted to adopt restrictions on testing laboratories. According to China's Ministry of Commerce (MOFCOM), the measures will prohibit, starting December 1, 2028, the authorization of testing laboratories, telecommunications certification bodies, and laboratory accreditation bodies located in China and other so-called “non-reciprocal economies.” The restrictions also bar conducting FCC-related testing, certification, or accreditation activities in those economies.

For foreign founders who register and operate a company in China—especially in electronics, communications equipment, smart manufacturing, or connected devices—this development matters. It may affect how products are tested and certified for the US market and could influence supply chain and compliance planning.

China's Official Response

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

MOFCOM emphasized that Chinese testing laboratories are an important part of the global testing and certification system. They provide cost-effective support for the production and trade of global communications electronics and smart manufacturing-related products. The spokesperson criticized the US side for 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.” According to MOFCOM, this raises testing costs for companies and lengthens product delivery and iteration cycles, ultimately harming US companies and consumers.

The spokesperson also noted that China has repeatedly proposed negotiations on a “bilateral mutual recognition agreement,” but the US attitude has been extremely passive and negative.

What This Means for Foreign Founders Operating in China

If you run a China-based company that manufactures or exports electronic or telecommunications products to the United States, you may need to review your testing and certification strategy. The FCC measure does not take effect until December 1, 2028, but product development and certification timelines can be long. Early planning can help you avoid disruptions.

Key practical points from the MOFCOM statement:

• Scope of restriction: The FCC measure targets testing laboratories, telecom certification bodies, and lab accreditation bodies in China and other “non-reciprocal economies.” FCC-related testing, certification, or accreditation in those locations will be prohibited from the effective date.
• Timing: The restriction begins December 1, 2028. Companies have time to adjust, but certification processes should be reviewed well in advance.
• Cost and timeline impact: MOFCOM argues that forcing testing reshoring raises costs and lengthens delivery and iteration cycles. Foreign founders should factor potential higher testing costs and longer lead times into their budgets and product roadmaps.
• China's position: China opposes the measures and says it has taken countermeasures. It has also proposed a bilateral mutual recognition agreement, but according to MOFCOM, the US response has been消极 (negative).

Foreign founders should note that the situation may evolve. China's MOFCOM said the door for resolving issues through consultation remains open and urged the US to remove the measures. If the US persists, China said it will take further necessary measures to safeguard its legitimate rights and interests.

How to Prepare Your China-Based Company

For foreign founders registering or operating a company in China, here are practical steps to consider:

• Review your product certification needs: Identify which products require FCC testing or certification for the US market and where testing is currently performed.
• Explore alternative testing locations: If your products are tested in China, consider whether testing in other jurisdictions might be necessary after 2028. Ensure any alternative labs are authorized for FCC work.
• Monitor official updates: Follow announcements from MOFCOM and the FCC for details on implementation, scope, and any exemptions.
• Budget for potential cost increases: Plan for possible higher testing and certification costs and longer timelines.
• Stay informed on mutual recognition: China has proposed a bilateral mutual recognition agreement; if progress occurs, it could affect testing requirements.

These are general considerations. The specific impact on your business depends on your products, markets, and supply chain. Consulting with a compliance specialist is advisable.

China's Stance and Next Steps

MOFCOM reiterated that China remains open to resolving issues through consultation. It hopes the US will heed industry calls, respect market rules, and work with China to immediately withdraw the measures. If the US insists on its course, China will take further necessary measures to firmly safeguard its legitimate rights and interests.

Foreign founders should watch for further developments, as the situation may change. The MOFCOM statement underscores the importance of staying agile and informed when operating in China's manufacturing and export ecosystem.

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

Need Help Navigating Compliance in China?

If you are a foreign founder looking to register or operate a company in China, ChinaMNC can help you understand the regulatory landscape and practical steps. Contact us on WhatsApp or WeChat at +86 153 1898 8535 for assistance with company registration and ongoing operations in China.