U.S. agency names Chinese telecom firms to national security threat list

A man uses his phone near a China Unicom booth at an exhibition during China Internet Conference in Beijing, China, July 13, 2021. REUTERS/Tingshu Wang/File Photo

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Sept 20 (Reuters) – The U.S. Federal Communications Commission (FCC) named Chinese telecom companies Pacific Networks Corp, its wholly-owned subsidiary ComNet (USA) LLC and China Unicom (Americas) as threats to U.S. national security, the regulator said Tuesday.

The designations are under a 2019 law aimed at protecting U.S. communications networks. In March 2021, the FCC initially designated five Chinese companies under its so-called “Covered List” – including Huawei Technologies Co, ZTE Corp (000063.SZ), Hytera Communications Corp (002583.SZ), Hangzhou Hikvision Digital Technology (002415.SZ) and Zhejiang Dahua Technology Co (002236.SZ).

The FCC said the companies are subject to the Chinese government’s exploitation, influence and control, along with the associated national security risks. They also raised concerns both “will be forced to comply with Chinese government requests for communications intercepts, without the ability to challenge such requests.”

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The Chinese embassy in Washington and U.S. lawyers for China Unicom and Pacific Networks did not immediately respond to requests for comment.

Earlier this year, the U.S. regulator voted to revoke China Unicom’s U.S. unit, Pacific Networks and ComNet’s authorization to operate in the United States, citing national security concerns.

FCC Chair Jessica Rosenworcel said the move was critical to protecting U.S. communications networks from foreign

national security threats.

“We are taking additional action to close the door to these companies.”

In March, the FCC added Russia’s AO Kaspersky Lab, China Telecom (Americas) Corp (0728.HK) and China Mobile International USA (0941.HK) to the covered list.

In October 2021, the FCC also revoked the U.S. authorization for China Telecom (Americas) and in 2019, rejected China Mobile’s bid to provide U.S. telecommunications services, citing national security risks.

Inclusion on the covered list means money from the FCC’s $8 billion Universal Service Fund may not be used to purchase or maintain products from the companies. The fund supports telecommunications for rural areas, low-income consumers and facilities such as schools, libraries and hospitals.

Earlier this year, the Chinese Embassy in Washington said the FCC “abused state power and maliciously attacked Chinese telecom operators again without factual basis. The U.S. should immediately stop its unreasonable suppression of Chinese companies.”

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Reporting by David Shepardson; Editing by Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

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