By David Shepardson

WASHINGTON (Reuters), – Wednesday’s vote by the U.S. Federal Communications Commission to revoke permission for Chinese telecom Pacific Networks to use U.S. telecommunications providers ComNet and its subsidiary ComNet was a victory.

American regulator, FCC, voted 4-0 to remove the 2001 authority. This is their latest attempt to ban Chinese telecoms companies from the United States due to national security concerns. FCC stated that ComNet and Pacific Networks were indirectly owned by the Chinese government and are therefore controlled and controlled by them.

Jeffrey J. Carlisle is a U.S.-based lawyer who represents Pacific Networks. He declined comment. He told the FCC in January that Pacific Networks was owned by CITIC Telecom International Holdings.

FCC claims that the carriers are eventually controlled by CITIC Group Corp. It is a Chinese limited liability state-owned company.

Carlise wrote that the carriers engaged in “very limited and small-scale facilities-based operations” in the United States, which did not present national security concerns …. The primary business of these companies was to provide retail calling cards.

Washington’s Chinese Embassy did not respond immediately.

Geoffrey Starks, FCC commissioner, noted three-year-old commission efforts to deal with Chinese telecom operators. Starks noted that, taken together, their actions had strengthened our nation’s security.

FCC in March 2021 found that ComNet and Pacific Networks failed to address “serious concerns” regarding the FCC’s authority to continue providing telecommunications services to the United States.

The FCC approved a similar authorization in January for China Unicom (NYSE 🙂 to operate within the United States. This was due to national security concerns.

The FCC revoked U.S. authorization to China Telecom (NYSE 🙂 (Americas) in October. It stated that it was “subject to exploitation and influence by the Chinese government.” Chinese Telecom did not convince the United States court to reverse its decision.

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