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in USA

US Bans Chinese Telecom Giant Unicom Over Spying Concerns

Maynard Championby Maynard Champion
January 28, 2022
Reading Time: 3 mins read
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US Bans Chinese Telecom Giant Unicom Over Spying Concerns

The United States of America (USA) has banned China Unicom from operating in the country because of concerns of spying fears as the company has become the latest Chinese telecoms giant to be banned from the US over “significant” national security and espionage concerns.

The Federal Communications Commission (FCC) indicated that it has voted unanimously to revoke authorisation for the company’s American unit to operate in the US. “The firm must stop providing telecoms services in America within 60 days.”

The announcement comes after larger rival China Telecom had its licence to operate in the US revoked in October.

The Federal Communications Commission chairwoman, Jessica Rosenworcel, explained that there is an evidence supporting their decision.

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“There has been mounting evidence – and with it, a growing concern – that Chinese state-owned carriers pose a real threat to the security of our telecommunications networks.”

Jessica Rosenworcel

However, China Unicom dispelled the reasons given by the American Regulators, noting that its American unit has always obeyed the US regulations.

“Unicom has a good record of complying with relevant US laws and regulations and providing telecommunication services and solutions as a reliable partner of its customers in the past two decades”.

China Unicom

The parent company based in the Hong Kong indicated its preparedness to follow on the issue, while the Chinese Embassy in Washington did not immediately respond to the situation.

“China Unicom (Hong Kong) Limited will closely follow the development of the situation.”

China Unicom

Chinese technology and telecoms firms have been targeted in recent years by US authorities over national security concerns.

In November, President Joe Biden signed legislation that stops companies judged to be a security threat from receiving new telecoms equipment licences.

Under the Secure Equipment Act, the FCC should no longer review applications from companies ruled to be a threat.

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It means equipment from Huawei, ZTE and three other Chinese companies cannot be used in US telecoms networks.

Also in November, the US government added a dozen more Chinese companies to its restricted trade list, citing national security and foreign policy concerns. Meanwhile some reports from Washington stated that some of the firms are helping develop the Chinese military’s quantum computing programme.

In October, Washington revoked the US licence of China Telecom, also citing national security concerns.

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US officials said the Chinese government’s control of the company gave it the opportunity “to access, store, disrupt, and/or misroute US communications”.

This in turn could allow it “to engage in espionage and other harmful activities against the US”, they said.

China Telecom, the largest Chinese telecommunications company, has provided services in the US for nearly 20 years through China Telecom Americas.

In 2019, Chinese state-owned telecoms giant China Mobile also had its US licence revoked.

It can be recalled that the FCC had warned in 2020 that it might shut down US operations of three state-controlled Chinese telecommunications companies, citing national security risks, including China Telecom Americas, as well as China Unicom Americas, Pacific Networks Corp and its wholly-owned subsidiary ComNet (USA) LLC.

READ ALSO: Government Sets A Higher Revenue Target For GRA In 2022

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