According to a Reuters report, the US Federal Communications Commission (FCC) stated on the 10th that it had initiated procedures to revoke China Telecom’s authorization to provide telecommunications services in the United States, which further suppressed Chinese companies participating in the US telecommunications industry. At the same time, the FCC also rejected a petition from Huawei Technologies Co., Ltd. that day. L Huawei previously requested the agency to reconsider its decision to designate Huawei as a “national security threat” to the United States.

Screenshot of the official website of the Federal Communications Commission (FCC)

FCC Chairman Ajit Pai claimed that “for national security considerations,” several US government agencies have proposed to revoke China Telecom’s authorization to operate in the United States. He claimed that “someone is very worried” that China Telecom will be “forced” to comply with the Chinese government’s information requirements, including communications interception.

As the largest telecommunications company in China, China Telecom has been authorized to operate in the United States for nearly 20 years. Earlier in June, China Telecom’s US subsidiary, China Telecom Americas, pointed out that the US government’s claims were “unfounded” and that the FCC should not “be based solely on foreign policy concerns in the absence of specific evidence of misconduct” and revoke its right to operate business in the United States. It also added that “the company’s behavior so far has not provided any reasonable basis for the lack of trust claimed by the US government”.

As early as April this year, the FCC threatened that it might close the business of three Chinese telecom companies’ subsidiaries in the United States on the grounds of so-called “national security risks”, including China Telecom Americas, China Unicom Americas, and Pacific Networks and its wholly-owned subsidiary ComNet (USA) LLC. The US Department of Justice and other federal agencies also called on the FCC in April to revoke China Telecom’s operating license in the United States.

In May 2019, the FCC unanimously rejected the right of China Mobile Co., Ltd. to provide services in the United States, on the grounds that the so-called “Chinese government may use the license to conduct espionage activities against the U.S. government.”

The FCC stated in June that it had officially designated China’s Huawei and ZTE as a so-called “national security threat” and prohibited US companies from using US$8.3 billion in government funds (FCC General Service Fund) to purchase products from these companies. The FCC also rejected ZTE’s petition last month, confirming the decision to identify ZTE as a “national security threat.”

In addition, the FCC also finalized rules on the 10th, requiring U.S. telecom operators that use ZTE or Huawei equipment to “refurbish and replace” these equipment, and formulated a compensation plan to subsidize smaller operators to remove and replace them. These services and equipment. But Ajit Pai specifically pointed out that “the FCC cannot really implement the compensation plan until the US Congress approves the necessary funds.”

Huawei said in a statement:”We are disappointed with the FCC’s decision to mandate the removal of our products from the telecommunications network. This federal ultra vires act puts American citizens in rural areas that are basically underserved at risk. During the COVID-19 pandemic, reliable communication is essential.”