Xin Lang Cai Jing·2025-10-18 10:24Core Viewpoint - The recent "Operation Clean Carts" initiated by the FCC targets Chinese-manufactured electronic products on cross-border e-commerce platforms, significantly impacting companies like Huawei, ZTE, Hikvision, and Dahua [2][4][5]. Regulatory Actions - The FCC has begun removing millions of Chinese electronic products from major platforms like Amazon and eBay, with over 5 million items worth more than $1 billion affected, particularly in the security and smart home sectors [4][11]. - The FCC's actions are part of a broader strategy to enhance scrutiny over Chinese technology, extending from brand-level regulations to supply chain transparency, affecting the entire electronic manufacturing ecosystem [6][10]. Supply Chain Implications - The new regulations indicate that any components associated with blacklisted companies could trigger product removals, shifting the focus from just the sellers to the entire supply chain [5][11]. - The FCC's decision to revoke certifications from 15 Chinese testing labs has led to increased costs and longer certification periods for exporters, with costs rising by 30% to 50% and delays of 2 to 3 months [10][11]. Market Impact - The crackdown has immediate repercussions on the North American cross-border e-commerce market, with significant financial implications for both Chinese and local brands that rely on Chinese components [11][12]. - The U.S. market for surveillance equipment is substantial, with approximately 30 million units shipped annually, of which around 20 million are sourced from mainland China, representing nearly 70% market share [12]. Corporate Responses - In response to regulatory pressures, Chinese companies are adjusting their overseas strategies by enhancing local data management and diversifying into emerging markets like Southeast Asia and South America [16][18]. - Companies are also optimizing supply chain management by establishing traceability systems and improving product certification processes to mitigate risks associated with compliance [16][18]. Future Outlook - The FCC's actions represent a comprehensive test of the Chinese manufacturing export model, with the ability of companies to maintain supply chain stability and adapt to regulatory changes being crucial for their long-term competitiveness in the global security and smart home markets [18].