Source: Global Times
The US government has once again suppressed China's telecom operators on the grounds of "national security." On the 27th local time, the Federal Communications Commission announced that it would revoke the authorization of China Unicom Americas to provide interstate and international communication services in the United States, and required the company to stop any domestic and international services in the United States within 60 days of the issuance of this order. It's the latest move by U.S. regulators to ban Chinese telecom operators from entering the U.S. on the grounds of "national security," and another example of how the U.S. government is further restricting the impact of Chinese companies on U.S. consumers, businesses, and communications networks. The Chinese Foreign Ministry responded on the 28th that the US side abused state power to unreasonably suppress Chinese enterprises without listing specific illegal facts, which is a serious violation of international economic and trade rules.
According to Reuters reported on the 27th, four members of the US Federal Communications Commission unanimously voted to pass the above decision. The FCC believes the action "protects U.S. communications infrastructure from potential security threats."
The committee also claimed that China Unicom Americas, a Chinese state-owned enterprise, was "exploited, influenced, and controlled by the Chinese government" and was very likely to be "forced to carry out the Chinese government's demands" to "give the company and the Chinese government the opportunity to access, store, disrupt, or misrepresent U.S. communications and engage in espionage and other harmful activities against the United States, which would greatly increase national security and law enforcement risks."
FCC Chairperson Jessica Rosen Wösser claimed that since China Unicom obtained its operating mandate in the United States 20 years ago, "the national security landscape has changed, and there is growing evidence that Chinese state-owned operators pose a real threat to our telecom cybersecurity." Jeffrey Stax, a committee member, said that despite the revocation of the authorization, China Unicom could "continue to provide data center services to U.S. consumers." He said the FCC and Congress should study the issue and decide whether the committee needs greater competence to address the security concerns raised by those centers.
In response, China Unicom responded that China Unicom Americas "has a proven track record of complying with relevant U.S. laws and regulations and providing telecommunications services and solutions as a reliable partner to customers over the past 20 years." China Unicom argued that the FCC's decision "did not have any justification" and did not give the company "the required due process" and that China Unicom would "actively protect the rights and interests of the company and its customers."
Internet industry analyst Liu Dingding said in an interview with the Global Times reporter on the 28th that this is a consistent blow to Chinese enterprises by the United States, and the impact on the actual business should be small, because the main income of Chinese telecom operators, including China Unicom, does not come from the United States, and the United States hopes to use this to put pressure on China in public opinion and occupy the so-called initiative in diplomacy. China Unicom's relevant staff also told the Global Times reporter that the revenue of China Unicom's US business mainly comes from roaming and data center business, accounting for less than 1% of global business revenue.
In recent years, the U.S. government has frequently attacked Chinese companies under the pretext of "national security." In May 2019, the FCC rejected a license application from China Mobile's U.S. subsidiary. On October 26, 2021, the committee announced the revocation of China Telecom Americas' authorization to operate in the United States, and the latter filed a lawsuit with the U.S. Circuit Court the following month to ask the former to revoke the decision. In addition, china's three major telecom operators were delisted from the New York Stock Exchange due to an executive order signed during the presidency of former US President Trump prohibiting Americans from investing in so-called "Chinese enterprises with military backgrounds".
On the 28th, Chinese Foreign Ministry spokesman Zhao Lijian was asked about relevant issues at a regular press conference, saying that as a matter of principle, what I can tell you is that the US side, without listing specific illegal facts, once again revoked the license of Chinese enterprises to operate in the United States on the grounds of "national security", nakedly generalized the concept of national security, and abused state power to unreasonably suppress Chinese enterprises. This is a serious violation of international economic and trade rules, and it undermines the legitimate rights and interests of global consumers, including US users. Zhao Lijian said that the Chinese government supports relevant enterprises to safeguard their rights and interests in accordance with the law, and will continue to take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.