Chinese Cellular Modules Pose National Security Risks to U.S. Infrastructure

• •Chinese firms Quectel and Fibocom control nearly 50% of the global cellular module market.
• •Cellular modules maintain remote access, posing risks for espionage and sabotage.
• •The U.S. must act to mitigate risks through procurement bans and trade sanctions.

A report by the Foundation for Defense of Democracies (FDD) warns that Chinese-produced cellular modules from firms Quectel and Fibocom, which control nearly half of the global market, present significant national security risks. These modules are embedded in various critical systems, including smart devices, power grids, ports, hospitals, and transportation networks. Their remote access capabilities for software updates create vulnerabilities that could be exploited for espionage or sabotage. The report outlines the potential for these modules to collect sensitive data and disrupt U.S. military mobilization or infrastructure operations during crises. While the risks remain largely hypothetical, their cumulative impact could be severe if not addressed. The U.S. is urged to mitigate these risks through procurement bans and trade sanctions to limit the proliferation of these modules. With an estimated 30.9 billion devices globally, cellular modules are integral to the Internet of Things (IoT) architecture.