BEIJING (AP) — Washington expelled another Chinese state-owned phone operator from the U.S. market over national security concerns amid rising tensions with Beijing.
According to an order issued on March 16, the FCC revoked the authorization of Pacific Networks Corp. to provide domestic and international services.
The U.S. government is reducing Chinese access to U.S. markets and investments in possible espionage and Beijing’s military development.
The FCC cited “significant national security and law enforcement risks” that Pacific networks could monitor or disrupt U.S. communications. The company said there was nothing to eliminate those risks while the company was operating in the U.S.
President Joe Biden has expanded efforts begun under his predecessor Donald Trump to restrict Chinese companies’ access to U.S. technology, investment and markets over concerns they pose security risks or aid military development.
In October, a unit of China Telecom Co., Ltd., one of China’s three state-owned operators, was expelled from the U.S. market by the FCC on similar grounds.
The FCC said in 2019 that it planned to revoke licenses granted two decades ago to China Telecom and another state-owned operator, China Unicom. It rejected a license application from a third operator, China Mobile Ltd.
The FCC also cited unspecified “actions and representations” made by Pacific Networks to regulators and Congress that “demonstrate a lack of credibility and reliability.”
According to a 2020 U.S. Senate report, Pacific Networks owns ComNet (USA) LLC, a U.S. company that provides international services, calling cards and global SIM cards, as well as network management, business phone systems and website services.
The companies were ultimately owned by the Chinese cabinet’s main holding company, Citic Group, which “may have access to U.S. customer records,” according to the report by the Senate Permanent Subcommittee on Investigations.
Under Chinese law, the companies are obligated to “support the Chinese government’s intelligence work,” the report said.
