FCC Prepares to Ban Three China Telecom Companies from U.S. Sales
Citing national security concerns, the FCC is taking steps to ban three more companies from providing telecommunications services in the U.S., because they are “indirectly and ultimately owned and controlled by” the Chinese government. The companies are China Telecom’s two U.S.-based units – China Unicom Americas and Pacific Networks – and Pacific Networks’ subsidiary, ComNet.
The FCC cites the changing global cybersecurity environment, the opportunity these companies pose for state-sponsored cyber activities in the U.S., and China’s statutory requirement for Chinese companies to “collaborate in gathering intelligence.” The formal deadline has passed for these companies to respond to “show cause” orders from the FCC, demonstrating that these grounds are invalid.
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