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The U.S. Federal Communications Commission (FCC) has taken action to expel one of Hong Kong’s largest telecom carriers from operating in the United States, citing national security concerns over the company’s ties to the Chinese Communist Party (CCP).
The U.S. telecom regulator
announced on Oct. 15 that it had issued an Order to Show Cause to HKT (International) Ltd. and its subsidiaries, requiring them to “explain why the FCC should not commence revocation proceedings against them,” citing their affiliation with CCP-controlled China Unicom Americas.
If finalized, HKT would be barred from providing international and domestic telecom services to and within the United States, the FCC stated.
“Today’s Order continues the FCC’s work of ensuring that CCP-controlled entities that pose national security risks to our country cannot connect to our telecom networks,” FCC Chairman Brendan Carr said in a statement.
Carr noted that the FCC had
added China Unicom to its Covered List of communications equipment and services deemed a threat to U.S. national security. Thus, the FCC’s action on HKT “is an appropriate step towards ensuring the safety and integrity of our communications networks,” Carr said.
“The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China,” he added.
HKT is a subsidiary of Hong Kong-based telecoms giant PCCW, which is majority-owned by Hong Kong tycoon Richard Li, son of billionaire Li Ka-shing, Hong Kong’s richest man, according to
Forbes.
In 2022, the FCC determined that China Unicom Americas had been ultimately owned and controlled by Beijing.
China Unicom Americas appealed the decision, but a Ninth U.S. Circuit Court of Appeals panel
upheld the FCC’s order in December last year.
“Substantial evidence supports the FCC’s conclusion that CUA’s ultimate Chinese government ownership as well as the significant overlap among its board members with those of its parent entities and the CCP itself leave it particularly vulnerable to Chinese government influence, exploitation, and control,” Circuit Judge Daniel Collins wrote in the majority’s
90-page order at the time.
In response to an email inquiry from The Epoch Times, HKT said it is reviewing the FCC’s order to show cause.
“We will appropriately respond to the relevant authorities and are committed to doing our utmost to fulfill our responsibilities to all stakeholders,” HKT stated.
On Oct. 10, Carr
announced that major U.S. e-commerce sites had removed “several million listings” for prohibited Chinese electronics as part of its crackdown called “Operation Clean Carts.” According to the FCC, the removed listings included smart watches and home security cameras from companies, including telecom giants Huawei and ZTE, surveillance equipment maker Dahua Technology, and security camera maker Hangzhou Hikvision.
“The Communist Party of China has engaged in a multi-prong effort to insert insecure gear into Americans’ homes and businesses,” Carr said in a statement at the time.
“This Covered List equipment poses an unacceptable risk to our country’s national security and to the safety and security of Americans.”
The FCC is preparing to vote on Oct. 28 to further restrict the use of telecommunications equipment produced by Chinese companies deemed national security threats.
In March, the FCC
launched a new unit called the Council for National Security to mitigate cybersecurity risks associated with unsecured networks.
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Later in the same month, the FCC
announced the council’s first major initiative: a sweeping investigation into nine Chinese companies whose equipment or services had been added to the agency’s Covered List to determine whether they are evading U.S. restrictions. The nine companies included Huawei, ZTE, and China Unicom Americas.
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Reuters contributed to this report.
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