Regulators have begun legal proceedings that could strip three Chinese state-owned telecommunications companies of their right to operate in the United States, officials said Wednesday, citing national security concerns.

The three firms -- China Unicom America, Pacific Networks, and ComNet -- had failed to adequately prove their Americas operations were not subject to "undue influence" from Beijing, the Federal Communications Commission said.

Commission officials voted 4-0 at a hearing to begin an investigation, which could see the firms stripped of their right to operate within the US.

"The threat to our networks from entities aligned with Communist China is one that we must address head on, and I am pleased that the FCC continues to show the strength and resolve necessary to meet this menace," FCC commissioner Brendan Carr said in a statement.

"When it comes to Communist China, we have set a high bar for action over the last few years," he added.

The move spells more bad news for the embattled firms' US operations, following a January decision by the New York Stock Exchange to bar them from trading.

In a statement following Wednesday's ruling, China Unicom -- one of the world's largest carriers -- insisted that it has never acted illegally and expected a "thorough, fair and fact-based review of the company's conduct by the FCC," Bloomberg reported.

Wednesday's decision comes amid a broader drive by US regulators to crackdown on Chinese telecoms groups they see as a threat to national security.

Last week, regulators listed tech giant Huawei to a roster of communications companies thought to pose "an unacceptable risk", signalling that hopes for are set with the United States under President Joe Biden, after the firm was battered by sanctions imposed by Donald Trump's administration, were unfounded.

bur-oho/je

China Unicom

Related Links
Cyberwar - Internet Security News - Systems and Policy Issues

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Canadian authorities accused of deception in Huawei exec extradition case
Vancouver (AFP) March 17, 2021
A lawyer for Huawei executive Meng Wanzhou on Wednesday accused Canadian authorities of being "deliberately deceptive" and "untruthful" in their court testimony about her 2018 arrest and then trying to cover it up. Meng is fighting extradition to the United States, where she faces charges of bank fraud and conspiracy related to a Huawei subsidiary's alleged violations of US sanctions on Iran. Both Meng and the Chinese telecom giant deny any wrongdoing. Her defense lawyer Tony Paisana said author ... read more