A move by the US Federal Communications Commission (FCC) against four Chinese telecom operators is more about politics than the security concerns it cited, which is in line with Washington’s campaign to contain China’s rise.
The FCC measure might gain chips for the US in future trade talks between the two countries, Chinese analysts said on Sunday.
The comments came after the FCC said on Friday it may shut down the US operations of four Chinese telecommunications companies – China Telecom Americas, China Unicom Americas, Pacific Networks Corp and its wholly owned subsidiary ComNet (USA), citing national security risks.
The FCC has told these companies that they must show they are independent from the Chinese government. Otherwise, it will bar them from operating in the US – the agency’s latest move to restrict Chinese companies in the US.
“We simply cannot take a risk and hope for the best when it comes to the security of our networks,” FCC Chairman Ajit Pai said in a statement.
However, as China and the US, the two largest economies in the world, are at odds over issues such as trade and the COVID-19, the FCC’s move at this time is more political than technical, and it is part of the US’ comprehensive effort to contain China, Xiang Ligang, a veteran telecoms industry analyst in Beijing, told the Global Times on Sunday.
“The operations of these companies are very small in the US. They mainly provide international telecom services for Chinese customers who travel to the US, which has a limited impact on the US major operators,” Xiang said, adding that citing “security risks” as an excuse shows the obvious political purpose – to limit China’s influence.
Wu Xinbo, dean of the Institute of International Studies at Fudan University, agreed with Xiang, saying that after the US government forced Huawei – China’s giant telecom solutions provider – out of its market, the US is now seeking other targets to contain China.
“It wants these companies to show that they are independent from the Chinese government as they are state-owned companies. But since [the US] is also doing many types of business with Chinese state-owned companies, such as Bank of China or Sinopec, if it applies the same rule, how could these businesses continue?
“So, there is a political purpose, and the US might also be using this to gain chips for further trade talks with China,” Wu said.
China Telecom refused to comment on the matter. China Unicom had not responded to the interview request and Pacific Networks Corp was not reachable as of press time.
This potential ban on Chinese companies is not the US agency’s first effort to limit China’s involvement in the US network.
In May 2019, the FCC voted to block China Mobile from entering the US market, citing risks that China could use the company to spy on the US government, according to media reports.
On April 9, the US Department of Justice recommended that the FCC revoke and terminate China Telecom’s authorizations to provide international telecommunications services to and from the US, also on the grounds of its national security.
“The FCC’s move at this time is not because they [the US] suddenly found a security issue; it’s a move along the US’ political direction – to contain China, and if the US doesn’t change the policy, it won’t be a surprise if the US takes further action to shun other Chinese companies,” Xiang noted.
Visitors tour a 5G test space operated by China Telecom on Sunday in suburban Beijing. Photo: VCG
