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The Federal Communications Commission revoked permission for Pacific Networks to provide domestic and international service under an order issued Wednesday.
The US government is working to limit Chinese access to US markets and investment due to potential espionage and Beijing’s military development.
The FCC noted the “significant national security and law enforcement risks” that Pacific Networks could monitor or disrupt US communications. She said there are no steps that can eliminate those risks while the company operates in the United States.
President Joe Biden He has expanded the efforts begun during the era of his predecessor, Donald Trumpto restrict access to US technology, investment, and markets for Chinese companies out of concern that they are security risks or aid military development.
In October, the FCC fired a unit of China Telecom Ltd. , one of the three major state-owned carriers in China, from the US market for similar reasons.
The FCC said in 2019 that it plans to revoke licenses granted two decades ago to China Telecom and another state-owned carrier, China Unicom Ltd.
The FCC also cited unspecified “behaviour and representations” by the Pacific Networks of regulators and Congress that “demonstrate a lack of trustworthiness and reliability.”
Pacific Networks owns a US company, ComNet (USA) LLC, which provides international service, calling cards, and global SIM cards, as well as managing networks, business phone systems, and website services, according to a US Senate report in 2020.
The Senate Permanent Subcommittee on Investigations report said the companies are ultimately owned by China’s cabinet-affiliated holding company CITIC Group, which “may be able to gain access to US customer records.”
The report said companies are obligated under Chinese law to “support the intelligence work of the Chinese government.”