U.S. continues to divest Chinese companies from telecommunications networks

The U.S. government’s efforts to exclude Chinese companies from its communications networks continue, Light Reading reported. This week, Pacific Networks and its subsidiary ComNet expressed hope that the Federal Communications Commission (FCC) would not shut down its Operations in the United States. In addition, FCC lawyers have provided a legal basis for barring U.S. telecommunications companies from using Huawei devices.

U.S. continues to divest Chinese companies from telecommunications networks

At the same time, the UK has been affected by US action against China, and the British government is discussing whether to comply with US demands to ban Huawei from the country’s telecommunications market altogether.

Pacific Networks and ComNet Responses

“The Chinese government has never asked our two companies to take any action that would ‘endanger the security and law enforcement interests of the United States’, and neither of our companies will be easily influenced and controlled by the Chinese government.” “On the contrary, Pacific Networks and ComNet provide quality service to customers and consistently comply with FCC regulations and have been cooperating with U.S. national security and law enforcement,” Pacific Networks and ComNet said in a filing with the FCC. “

Pacific Networks and ComNet are two of four Chinese telecommunications companies targeted by the FCC for allegedly posing a potential risk to U.S. national security. Following a ban on China Mobile’s telecommunications facilities in the U.S., the FCC in April opened new procedures for China Telecom Americas, China Unicom Americas, Pacific Networks and its wholly-owned subsidiary ComNet, asking them to give a reason why the agency should not initiate a deauthorization process to enable them to do business in the United States.

In the 92-page response, Pacific Networks and ComNet said the FCC’s threat to bar them from entering the U.S. market was “unnecessary and unfounded.”

They disputed the basic premise of the FCC inquiry.

“FCC做出这些行动的唯一原因是,我们是一家中国政府所持投资公司间接占股超过50%的公司,而不是因为他们发现了中国政府的任何干预行为或公司运营和网络中存在漏洞。”Pacific Networks和ComNet这样写道。“FCC没有提及关于两家公司的任何具体不当行为–也就是将导致我们的业务授权被撤销并因此禁止向公众提供电信服务的行为,而是援引FCC在其《2019年中国移动指令》中的行动,并断言自这些中国公司(并未单独针对Pacific Networks或ComNet)获得授权以来,人们普遍担心中国所构成的国家安全和执法风险出现增加。”

The two companies also detailed their respective business and ownership structures.

Two other Chinese companies targeted by the FCC, China Telecom Americas and China Unicom Americas, have yet to respond to the agency’s actions, Reuters reported.

U.S. continues to divest Chinese companies from telecommunications networks