Beijing (AP) — Washington expelled another Chinese state-owned telephone operator from the US market for reasons of national security after rising tensions with Beijing.
The Federal Communications Commission canceled Pacific Networks Corporation's authority to provide domestic and international services under an order issued on Wednesday.
The US government is reducing China's access and investment in the US market due to potential espionage and the military development of Beijing.
The FCC cited “serious national security and law enforcement risks” that could allow Pacific Networks to monitor or interfere with US communications. The agency stated that there is no action to eliminate these risks as long as the company continues to operate in the United States.
US President Joe Biden continued his predecessor Donald Trump's efforts to restrict Chinese companies' access to U.S. technology, investment, and markets due to concerns that they pose a security risk or contribute to military development.
For similar reasons, the FCC expelled a subsidiary of China Telecom Ltd., one of China's top three state-owned operators, in October.
In 2019, the Commission stated that it plans to withdraw the license granted 20 years ago to China Telecom and other state-owned operators, China Unicom Ltd., and refused to apply for a license from the third company, China Mobile Ltd.
The FCC also cited unspecified Pacific Networks' “actions and statements” “demonstrating a lack of trust and credibility” to regulators and Congress.
According to the 2020 U.S. Senate report, Pacific Networks owns ComNet (USA) LLC, an American company that provides international services, global calling cards and SIM cards, network management, corporate phone systems, and web services.
According to a report from the Senate Senate Investigation Subcommittee, ultimately, the operator is owned by CITIC Group, a major Chinese government conglomerate who “has access to US customer records.”
The report stated that it is obliged to “support the information work of the Chinese government” under Chinese law.