Executive Branch Agencies Recommend the FCC Revoke and Terminate China Telecom’s Authorizations to Provide International Telecommunications Services in the United States | OPA
Today, the Departments of Justice, Homeland Security, Defense, State, Commerce, and the United States Trade Representative unanimously recommended that the Federal Communications Commission (FCC) revoke and terminate China Telecom (Americas) Corp.’s authorizations to provide international telecommunications services to and from the United States. China Telecom is the U.S. subsidiary of a People’s Republic of China (PRC) state-owned telecommunications company.
The Department of Justice led the review of China Telecom’s authorizations, and it based the recommendation on developments since the authorizations were last transferred in 2007, including China Telecom’s failure to comply with the terms of an existing agreement with the Department.
“Today, more than ever, the life of the nation and its people runs on our telecommunications networks,” said John C. Demers, Assistant Attorney General for National Security. “The security of our government and professional communications, as well as of our most private data, depends on our use of trusted partners from nations that share our values and our aspirations for humanity. Today’s action is but our next step in ensuring the integrity of America’s telecommunications systems.”
In its recommendation, the Executive Branch agencies identified substantial and unacceptable national security and law enforcement risks associated with China Telecom’s operations, which render the FCC authorizations inconsistent with the public interest. More specifically the recommendation was based on:
- the evolving national security environment since 2007 and increased knowledge of the PRC’s role in malicious cyber activity targeting the United States;
- concerns that China Telecom is vulnerable to exploitation, influence, and control by the PRC government;
- inaccurate statements by China Telecom to U.S. government authorities about where China Telecom stored its U.S. records, raising questions about who has access to those records;
- inaccurate public representations by China Telecom concerning its cybersecurity practices, which raise questions about China Telecom’s compliance with federal and state cybersecurity and privacy laws; and
- the nature of China Telecom’s U.S. operations, which provide opportunities for PRC state-actors to engage in malicious cyber activity enabling economic espionage and disruption and misrouting of U.S. communications.
Some of the foregoing relate to China Telecom’s failure to comply with a 2007 Letter of Assurance, which was a basis for the existing FCC authorizations. The Department’s National Security Division, Foreign Investment Review Section, identified those compliance issues through its mitigation monitoring program. As a result, the Executive Branch agencies concluded that the national security and law enforcement risks associated with China Telecom’s international Section 214 authorizations could not be mitigated by additional mitigation terms.
This action was taken under the legacy, ad hoc arrangement of the Departments of Justice, Defense, and Homeland Security, formerly known as Team Telecom, the operation of which was recently formalized by Executive Order dated April 4, 2020, establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. Applications referred by the FCC after the date of the Executive Order will be handled under the process outlined therein.
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It’s about time. The swamp has supported giving away our nations secrets to China since just after Richard Nixon. Bill Clinton with his tolerance and giveaway’s to China should be in Federal Prison for life. The political clingers-on of all party’s have always been looking for short term profitability with the $.30/hr labor rate from China for years. I fought it the first time my company sent me to Shanghai to set up a new factory for the company. I knew the Chinese culture pretty well growing up and they proved me right when they farmed out my company’s product production to unknown garage shops each time I returned home for a time-out. It resulted in defective product shipped to my company in the U.S. Without direct oversight of the production facility, the theft of intellectual property and poor quality was the norm. The American Elites have all turned a blind eye to the obvious abuses that the majority of citizens with common sense have been aware of since the Clinton years. Trump just raised that curtain for all to see. The media just works harder to side with China with their TDS. So much for media patriotism. Apathy, more apathy and leftist schooling have shattered the expected sense of national security that millennials and their parents have always taken for granted. China has always been a threat, and through the People’s Republic of China Army have actually invaded all democratic societies intellectually through the consent of past presidents, prime ministers and national leaders. The Chinese show a phony empathetic hand trying to bridge the political divide but actually subtlety divide us which is and has been their mission since Xi Jinping took power. Hopefully after we survive this disaster, we’ll raised awareness of China’s duplicity in creating this pandemic along with the WHO with a reckoning to come.