• The US regulator is getting closer to blocking China Mobile, China Telecom and China Unicom from running US datacentres
• FCC will also consider banning interconnections with Chinese companies
• Commissioners unanimously agreed to block Chinese lab testing of US-sold tech

The Federal Communications Commission (FCC) has voted to advance proposals that could preclude companies that pose security risks, including China Mobile, China Telecom and China Unicom, from running datacentres in the US and noted it is also considering blocking US telcos from interconnecting with the Chinese operators.

The US regulator announced that its latest notice of proposed rulemaking (NPR) not only clamps down further on the opportunity for “entities posing national security risks” to offer communications services in the US but also seeks to “close any regulatory gaps” that might be exploited by such companies.  

The move to prevent interconnection between the Chinese operators and companies that have points of presence (PoPs) at US internet exchanges could seriously upend the wholesale telecoms market: The FCC will consider extending restrictions to some affiliates of companies on its national security ‘Covered List’ and prohibit interconnections with carriers using equipment from listed suppliers, which includes the likes of Huawei and ZTE.

Despite previous clampdowns, major Chinese operators have maintained PoPs  across the US. China Telecom’s US division, for example, has eight PoPs across the US, according to its website. China Mobile has been barred from providing direct telecommunications services to the US public since 2019, but even China Mobile International’s website lists PoPs in several US cities.

Last year, the US House Select Committee on the Chinese Communist Party issued subpoenas to Chinese telcos, citing national security concerns of their remaining US cloud and data services.

In a statement, FCC chair Brendan Carr said the regulator was looking to “secure our networks from these bad actors, including limiting their interconnection ability”.

The move was part of wider tech reforms, in which the FCC voted unanimously to block all Chinese labs from testing electronic devices – including smartphones, cameras and computers – for use in the US.

The FCC has already voted to block PCCW subsidiary HKT (Hong Kong Telecom) from operating in the US, while it has also clamped down on the import of Chinese drones, routers and smart devices.

The Chinese government has pushed back, however, with China’s Ministry of Commerce saying it opposes the FCC’s moves and urging the US to “stop its wrong practices immediately”, according to reports in the Chinese media.

In response to the FCC’s moves, a spokesperson for the ministry stated that the FCC has abandoned the principle of technological neutrality and overstretched the concept of national security, the China Daily reported.

- James Pearce, Editor, TelecomTV