Closer and closer: The United States continues to suppress China in the communications industry

The U.S. government's efforts to exclude Chinese companies from its communications networks continue, Light Reading reported.

This week, Pacific Networks and its subsidiary ComNet said they hope the Federal Communications Commission (FCC) will not shut down their U.S. operations.

In addition, FCC lawyers provided legal grounds for banning US telecommunications companies from using Huawei equipment.

At the same time, the UK has also been affected by the US actions against China, and the British government is discussing whether to comply with the US requirements and completely ban Huawei from entering the country's telecommunications market.

"The Chinese government has never asked our two companies to take any action that would 'endanger the national security and law enforcement interests of the United States,' and our two companies will not be easily influenced and controlled by the Chinese government." Pacific Networks and ComNet said in the documents submitted to the FCC. "On the contrary, Pacific Networks and ComNet have provided excellent services to customers, have always complied with FCC regulations, and have been cooperating with U.S. national security and law enforcement agencies."

Pacific Networks and ComNet are two of four Chinese telecommunications companies targeted by the FCC as potential risks to U.S. national security.

Following its ban on China Mobile from building telecommunications facilities in the United States, the FCC in April opened new proceedings against China Telecom Americas, China Unicom Americas, Pacific Networks and its wholly owned subsidiary ComNet, requiring them to provide reasons why the agency should not initiate proceedings to revoke their authorizations, enabling them to conduct business in the United States.

In a 92-page response document, Pacific Networks and ComNet said the FCC's threat to ban them from the U.S. market was "unnecessary and unfounded."

They disputed the basic premise of the FCC's inquiry.

"The FCC took these actions solely because we are a company that is indirectly owned more than 50% by a Chinese government-owned investment firm, and not because they identified any Chinese government interference or vulnerabilities in our operations and networks," Pacific Networks and ComNet wrote. "Rather than citing any specific misconduct by either company that would result in the revocation of our licenses and, therefore, a prohibition on providing telecommunications services to the public, the FCC cited the FCC's actions in its 2019 China Mobile Order and asserted that there are general concerns about the increased national security and law enforcement risks posed by China since these Chinese companies (without singling out Pacific Networks or ComNet) were licensed."

The two companies also provided details of their respective businesses and ownership structures.

According to Reuters, two other Chinese companies targeted by the FCC - China Telecom Americas and China Unicom Americas - have not yet responded to the agency's actions.