On Wednesday, US regulators stripped Pacific Networks of its telecommunications license. A simmering confrontation between the US and China has dealt another blow to Chinese businesses. China Telecom and China Unicom had previously had their permits revoked by Washington. The Federal Communications Commission has now given Pacific and its subsidiary ComNet 60 days to cut off service.
Chinese control of the companies could pose significant threats to national security and law enforcement, the FCC said in a statement, adding Beijing could monitor or disrupt US communications. ComNet did not immediately respond to a request for comment.
The revocation of Pacific’s operating authority comes as US President Joe Biden has pursued a strategy to confront China broadly in line with that of his predecessor Donald Trump. This approach sent tensions soaring. There have been tense relations between the world’s two largest economies on many fronts, including trade, human rights, Taiwan, and the Covid-19 pandemic.
China Telecom is China’s largest fixed-line carrier, but it has faced problems in the United States for years, particularly during Trump’s presidency as his administration repeatedly clashed with Beijing over trade issues. The telecom companies have resisted the restrictions, with China Unicom saying in a statement in January that the FCC’s decision was made ‘without any reasonable basis and without providing the required due process’.
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