In the midst of escalating tensions with Beijing, Washington has removed another state-owned Chinese phone provider from the US market due to national security concerns.
In an order released Wednesday, the Federal Communications Commission terminated Pacific Networks Corp’s authorization to provide domestic and international services.
Because of alleged surveillance and Beijing’s military expansion, the US administration is restricting Chinese access to American markets and investment.
Pacific Networks might monitor or disrupt U.S. communications, according to the FCC, which claimed “serious national security and law enforcement threats.” It stated that no steps could be taken to eliminate the risks while the corporation was operating in the United States.
President Joe Biden has continued efforts launched by his predecessor, Donald Trump, to restrict Chinese enterprises’ access to U.S. technology, investment, and markets due to concerns that they pose a security risk or aid military development.
The FCC removed a unit of China Telecom Ltd., one of China’s three main state-owned carriers, from the US market in October for similar reasons.
The FCC announced in 2019 that it planned to withdraw licenses given to China Telecom and another state-owned carrier, China Unicom Ltd, two decades ago. China Mobile Ltd, the third carrier, had applied for a license, but it was denied.
According to a 2020 Senate report, ComNet (USA) LLC provides worldwide service, calling cards, and global SIM cards, as well as network management, business phone systems, and website services.
According to the Senate’s Permanent Subcommittee on Investigations report, the companies are ultimately held by the Chinese Cabinet’s major holding company, CITIC Group, which may be able to access U.S. Customer records.’
According to the report, corporations are required by Chinese legislation to support the Chinese government’s intelligence activity.