US - China Increasing Tension, FCC Adds Pacific Networks Corporation to Blacklist for Blocking

Pacific Networks Corp., blocked in the US. (photo: twitter @BNNUS)

JAKARTA - The US Federal Communications Commission (FCC) on Tuesday, September 20, declared Chinese telecommunications company Pacific Networks Corp, a subsidiary of ComNet (USA) LLC and China Unicom (America) a threat to US national security.

The designation falls under a 2019 law aimed at protecting US communications networks. In March 2021, the FCC initially designated five Chinese companies under its so-called "Covered List" - including Huawei Technologies Co, ZTE Corp, Hytera Communications Corp, Hangzhou Hikvision Digital Technology, and Zhejiang Dahua Technology Co, as threats to US security.

The FCC also said the companies were subject to Chinese government exploitation, influence, and control, along with the associated national security risks. They also raised concerns that they "will be forced to comply with the Chinese government's request for wiretapping communications, without the ability to oppose the request."

The Chinese embassy in Washington and US attorneys for China Unicom and Pacific Networks did not immediately respond to requests for comment from Reuters on the report.

Earlier this year, U.S. regulators choose to withdraw U.S. units. China Unicom, Pacific Networks, and ComNet authorized to operate in the United States, citing national security concerns.

FCC Chair Jessica Rosenworcel said the move was important to protect US communications networks from foreign threats. "We are taking additional action to close the door on these companies," Rosenworcel said

In March, the FCC also added Russia's AO Kaspersky Lab, China Telecom (Americas) Corp, and China Mobile International USA to the closed list.

In October 2021, the FCC also revoked the US authorization for China Telecom (America) and in 2019, rejected China Mobile's offer to provide telecommunications services in the US, citing national security risks.

The inclusion on the closed list means money from the FCC Universal Services Fund worth US$8 billion (Rp 119.6 trillion) may not be used to buy or maintain products from the banned companies. The fund supports telecommunications for rural areas, low-income consumers, and facilities such as schools, libraries and hospitals.

Earlier this year, the Chinese Embassy in Washington said the FCC "abused the power of the state and maliciously attacked Chinese telecom operators again without any factual basis. The US must immediately stop its senseless suppression of Chinese companies."