US Senator asks for probe on whether China is trying to thwart US spectrum efforts

WASHINGTON, March 25 (Reuters) - Senate Commerce Committee chair Ted Cruz on Tuesday asked U.S Director of National Intelligence Tulsi Gabbard to investigate if China is covertly working to prevent Congress from extending authority to auction wireless spectrum.

In 2023, the Federal Communications Commission lost the broad authority from Congress for wireless spectrum sales and lawmakers are considering legislation that would approve new auctions to free up spectrum for growing wireless use.

"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 said in a letter seen by Reuters.

The Chinese embassy said "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."

Gabbard's office did not immediately comment.

Cruz said on Tuesday that he is working to get spectrum auction authority attached to broad tax legislation Congress is expected to take up in the coming months.

China has announced it would open more spectrum bands for future 5G and 6G wireless use while the United States is debating next steps, Cruz noted.

"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 wrote.

He said a new spectrum auction could raise $100 billion or more.

"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 traffic -- and indeed, much of our government's traffic -- will flow," Cruz said.

China-based Huawei, the world's largest telecommunications equipment maker, did not immediately respond to a request for comment.

The FCC will re-auction spectrum to provide nearly $3.1 billion for U.S. telecom companies to remove equipment made by Huawei and ZTE (Shenzhen:000063).

Last week, FCC Chair Brendan Carr said the commission is investigating nine Chinese companies including Huawei, ZTE China Mobile and China Telecom to determine if they are seeking to evade U.S. restrictions.

It is the latest in a series of actions against Chinese telecom and technology firms by Washington. The FCC previously barred the Chinese companies from providing telecommunications services in the United States, citing national security concerns. (Reporting by David Shepardson, editing by Deepa Babington)