China’s third-largest telecom operator Unicom has run afoul of the Federal Communications Commission (FCC) over national security concerns.
The regulator voted 4-0 to repeal the company’s authorization to operate in US markets and gives China Unicom 60 days to stop all domestic interstate and international services.
Rival operator China Telecom had its licence to operate in the US revoked in October last year while China mobile was banned in May 2019.
FCC Chair Jessica Rosenworcel said China Unicom’s response to concerns raised by the commission had been “incomplete, misleading, or incorrect”.
“There has been mounting evidence – and with it, a growing concern – that Chinese state-owned carriers pose a real threat to the security of our telecommunications networks,” she said.
China Unicom was found to be “subject to exploitation, influence, and control by the Chinese government” by the US regulator.
“(It) is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight,” the FCC found.
The commission also cited a “changed national security environment” as a basis for its decision to ban the operator based on “significant national security and law enforcement risks”.
“A lack of candor, trustworthiness, and reliability,” was also raised as a key issue that eroded the “baseline level of trust” required to allow China Unicom to continue operating.
The unanimous decision by the FCC, which is an independent agency, comes after President Joe Biden signed legislation stopping telecoms licences for companies deemed a security threat.
Under the Secure Equipment Act which came into effect in November last year, the FCC should no longer review applications from companies viewed as a threat.
It means that telecom products made by Huawei, ZTE, and other Chinese companies cannot be used in US telecoms networks.
Dozens of Chinese companies in November last year were also added to a restricted trade list over national security and foreign policy concerns. (Sky News)