US regulator moves closer to halt operations of three state-controlled Chinese telecoms companies
- Federal Communications Commission issues ‘show cause’ orders to China Telecom Americas, China Unicom Americas, and Pacific Networks Corp subsidiary ComNet
- FCC Chairman Ajit Pai says ‘we simply cannot take a risk and hope for the best when it comes to the security of our networks’
The Federal Communications Commission on Friday asked three state-controlled Chinese telecommunications operators to explain why the United States should allow them to operate in the country despite mounting national security concerns, moving a step closer to revoke their licences.
In the so-called “show cause” orders FCC issued separately to China Telecom Americas, China Unicom Americas and Pacific Networks Corp’s wholly owned subsidiary ComNet (USA), controlled by Chinese government investment firm Citic Group, the commission directed the companies to make the case of why it should not start the process of revoking authorisations of their US operations.
“Foreign entities providing telecommunications services – or seeking to provide services – in the United States must not pose a risk to our national security,” said Ajit Pai, FCC chairman, in a Friday statement. “The Show Cause Orders reflect our deep concern … about these companies’ vulnerability to the exploitation, influence, and control of the Chinese Communist Party.”
“We simply cannot take a risk and hope for the best when it comes to the security of our networks,” said Pai.
Friday’s move is part of a recent push by US regulators to minimise Chinese involvement in US telecommunications infrastructure.
