The Federal Communications Commission (FCC) is taking decisive steps to remove Hong Kong Telecom (HKT) from U.S. telecommunications networks due to national security concerns. The agency has issued an “Order to Show Cause” to HKT, compelling the company to justify why it should not face revocation proceedings. This extensive 30-page document outlines the FCC’s rationale, emphasizing new certification and disclosure requirements for entities “owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.”
FCC Chairman Brendan Carr stated, “Today’s Order continues the FCC’s work of ensuring that CCP-controlled entities that pose national security risks to our country cannot connect to our telecom networks.” As one of the largest telecom firms in Hong Kong, HKT operates as a subsidiary of PCCW, in which China Unicom, a state-owned telecom provider, holds an 18% stake.
Context of the FCC Action
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Ongoing Efforts: This initiative is part of the FCC’s broader effort to mitigate potential vulnerabilities within U.S. telecom systems. A vote is scheduled for October 28 to discuss additional measures aimed at reinforcing protections for the communications supply chain.
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Regulatory Landscape: Recent months have seen heightened scrutiny from both China and the U.S. regarding companies operating across their borders. Notably, Chinese regulators have been investigating major tech acquisitions and imposing restrictions on local firms’ purchases of American AI chips, coinciding with ongoing trade negotiations between the two countries.
The FCC’s latest action underscores the increasing tension and regulatory scrutiny in the tech sector, as both nations navigate complex interdependencies in their markets.
