FCC Poised to Begin to Act Against Companies It Says Are Controlled by China

The FCC is poised to act against four companies it alleges are controlled by China's government. The agency issued show cause orders Friday to China Telecom Americas, China Unicom Americas, ComNet and Pacific Networks. They are asked to explain why the commission shouldn't “start the process of revoking their domestic and international section authorizations enabling them to operate” in the U.S. The materials are here.

The agency rejected a China Mobile USA application last year, and was expected to take additional steps against other such companies this year. “The Show Cause Orders reflect our deep concern -- one shared by the U.S. Departments of Commerce, Defense, Homeland Security, Justice, and State and the U.S. Trade Representative -- about these companies’ vulnerability to the exploitation, influence, and control of the Chinese Communist Party, given that they are subsidiaries of Chinese state-owned entities,” said FCC Chairman Ajit Pai.

Citing COVID-19 and communications network usage, Commissioner Geoffrey Starks said he supports the show cause orders. “With such an unprecedented increase in data traffic, we’ve never had a greater need to ensure the security of these communications,” he said. “We must pay even greater attention to whom we permit to interconnect with American communications networks.”

The four companies and China's embassy in Washington didn't immediately comment.