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U.S. FCC Takes Multiple Actions against Chinese Service Providers

Radio France Internationale (RFI) Chinese Edition recently reported that the U.S. Federal Communications Commission (FCC) is moving to prevent certification of wireless equipment by Huawei, ZTE, and other foreign companies deemed to pose a threat to U.S. national security. The new proposal would permanently ban all entities on the national security risk list (e.g. Huawei) from playing any role in equipment authorization. U.S. officials worry these companies could spy and steal data from the U.S., a charge that Chinese officials denied. The move is part of sweeping restrictions on Chinese technology companies implemented by the current and the previous U.S. administrations.

Well-known Chinese news site NetEase (NASDAQ: NTES) reported that the FCC is requiring U.S. subsidiaries of China Telecom, China Unicom, and China Mobile to stop their fixed or mobile broadband internet services in the United States. The order also applies to Pacific Networks and its wholly-owned subsidiary ComNet. The FCC previously banned these companies from providing telecommunications services. That decision has been upheld by U.S. courts. FCC Chairman Jessica Rosenworcel said that the commission has evidence that the Chinese telecom operators are now providing broadband services in the United States.

(1) RFI Chinese, May 2, 2024
(2) NetEase, April 26, 2024