The FBI investigates a Huawei-linked company that sells telco equipment used in every US state

It's not just TikTok that's getting all the heat. The US Commerce Department and FBI are investigating Baicells Technologies. This is a Chinese telecom equipment firm founded by former Huawei executives. The reason? You guessed it: potential national security risks!

Baicells, established in 2014 and operating in the US since 2015, supplies telecom equipment like routers and base stations used for 700 commercial mobile networks across every US state, a Reuters report reads. Is the FBI implying that we're talking about espionage or cyberattacks here?

The Commerce Department has issued subpoenas to Baicells, while the FBI has expressed concerns about its Chinese origins since at least 2019. The Pentagon recently added Baicells to a list of companies allegedly linked to China's military, a designation the company disputes and plans to appeal.

While US officials have not disclosed specific evidence of misuse, vulnerabilities in Baicells' equipment have raised alarms, the report goes on. The Cybersecurity and Infrastructure Security Agency (CISA) has issued multiple advisories about security flaws in Baicells base stations, warning of risks like remote hijacking.

Federal agents have approached Baicells customers, including the city of Las Vegas, urging them to reconsider using the company's products. In 2023, Las Vegas canceled a contract to expand its Baicells base stations after FBI officials raised security concerns. Similar warnings were issued in 2019 to a wireless provider in Virginia near a naval weapons testing facility.

Baicells has denied any security risks associated with its products and stated it fully cooperates with US investigations. The company claims to have severed ties with its Chinese parent since 2019 and emphasizes that its equipment is now made in Taiwan.

However, customs data shows most of its shipments to the US originate from China or Hong Kong. Critics argue that Baicells’ close ties to its Chinese leadership raise questions about its independence.