Telecom Equipment

FCC adds China Unicom, Pacific Networks to security threat list

September 21, 2022

The Federal Communications Commission (FCC) has named telecom companies Pacific Networks Corp, its wholly-owned subsidiary ComNet (USA) and China Unicom Americas as threats to U.S. national security.

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, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology.

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

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 communications networks from foreign national security threats. “We are taking additional action to close the door to these companies.”

In March, FCC added Russia’s Kaspersky Lab, China Telecom Americas 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 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, Reuters news report said.