The Federal Communications Commission initiated the process to revoke the operating authority of three companies because of ties to the Chinese government after consulting with key federal agencies.
“We know some countries may seek to exploit our openness to advance their own national interests,” Acting FCC Chairwoman Jessica Rosenworcel said at a commission meeting Wednesday. “And when we cannot mitigate that risk, we need to take action to protect the networks that are important to our national security and economic prosperity.”
To decide on granting foreign companies permits to operate within the U.S., the FCC consults with a group of executive agencies—the departments of Defense, Homeland Security and Justice, with input from others including the director of national intelligence—generally referred to as Team Telecom. The group advised risks presented by the three companies under consideration cannot be mitigated, commissioners said after voting to start the revocation process.
Because China Unicom, Pacific Networks and its subsidiary ComNet are “indirectly and ultimately owned and controlled by” the Chinese government, they are vulnerable to exploitation, the FCC said.
In similar decisions designating Huawei and ZTE national security threats, the FCC pointed to Chinese laws they say compel companies headquartered in China to cooperate with the government’s intelligence services.
This was also the reason cited for denying the application of China Mobile to provide services within the U.S. and the start of a revocation process for China Telecom, which is currently under litigation in the Fourth Circuit Court of Appeals.
In April of last year, the FCC sent "show cause"
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