"The Covered List (which lists both equipment and services) currently includes communications
equipment produced by
Huawei Technologies,
ZTE Corporation, Hytera Communications,
Hangzhou
Hikvision Digital Technology, and
Dahua Technology (and their subsidiaries and
affiliates). The new rules implement the directive in the Secure Equipment Act of 2021, signed
into law by President Biden last November, .... and launched inquiries on
IoT security and internet outing security, among other actions."
My understanding is the CCP was/is accused of using phones as spy devices to feed highly advanced Chinese A.I. engines, which along with "tracking friends of friends in sensitive positions" eventually lead to tax refund fraud, medical claim fraud, SSI fraud, and after death: vote fraud, in addition to the sale of personal information which led to identity theft, mortgage fraud, and title fraud (bad actors stole people's homes after taking out huge loans on those same homes, sold the homes to an unwitting buyer, and made off with the profits).
This eventually spread to hacking "smart" devices (like Honeywell thermostats, LG refrigerators, Maytag clothes washers, etc.) to bypass firewalls and infect non-Chinese made devices for information theft and continue the aforementioned fraud.
Similar claims have been made against TicTok and other ByteDance apps according to multiple U.S. agency reports.
Since other independent sources corroborate those claims to differing degrees the claims are at minimum credible.
One example of many:
In this video, Ryan Montgomery reveals a shocking discovery that his vacuum mop connects to a Chinese cloud server. He hacks into the server and finds out th...
m.youtube.com
Tracking and data warehousing/mining
isn't a new issue, and it's not just Chinese phones, it's every Internet connected device, the difference is who's collecting the data, what data they have, how they're using that data, to whom they're selling data about you to, and most importantly: who's hacking them to steal your identity and everything about you.