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FCC revokes China Unicom’s authorization to operate in U.S -Breaking

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© Reuters. China Unicom’s logo can be seen in Beijing at the branch office of China Unicom, 21 April 2016.

Diane Bartz and David Shepardson

WASHINGTON (Reuters), – On Thursday, the U.S. Federal Communications Commission voted to revoke U.S. authorization for China Unicom (NYSE 🙂 to operate in the United States. The FCC cited national security concerns.

American regulator has voted 4-0 to cancel the 2002 authority. This is the latest attempt to ban Chinese telecoms companies from the United States due to national security concerns.

China Unicom Americas is required to cease interstate and global telecommunications service in the United States by the 60-day deadline.

Requests for comment were not answered by the Chinese Embassy immediately.

China Unicom issued a statement stating that China Unicom’s lawyer had released statements denying the FCC’s decision and claiming it was not based on any valid grounds. China Unicom stated that it “will proactive protect the rights of the company’s customers.”

FCC stated that China Unicom Americas, which provides services for mobile virtual networks operator and private leased circuit international and Ethernet private lines services together with cloud and IP transit services within the United States, is in fact owned and managed by China.

Jessica Rosenworcel FCC Chair said that the national security landscape changed since the approval. There has been increasing evidence, and with it, concern -that Chinese state-owned carrier pose a serious threat to the security and reliability of our telecommunications network security.”

China Unicom’s responses to the FCC were “incomplete or misleading” according to the FCC.

Rosenworcel pointed out that the FCC had published last year the first ever list of communication equipment and services that pose a unacceptable threat to national security. She wrote this month to the Commerce Department and the FBI to request an update on the list.

Geoffrey Starks, FCC Commissioner, stated that China Unicom can “continue to offer data centre services to American consumers” in spite of the revocation.

He stated that Congress and FCC need to examine the matter and decide if it is necessary for the Commission to have greater authority over security issues posed by the centers.

In March, the FCC started to make efforts to cancel China Unicom’s authorization.

FCC revoked U.S. approval for China Telecom (NYSE – Americas) in October. It stated that the Chinese government could “exploit, influence, and control” the FCC. The Chinese were unable to appeal the decision.

FCC rejected China Mobile Ltd (NYSE:) Ltd’s offer to supply U.S. telecommunications Services in 2019. FCC cited national security risk.

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