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Chinese telecom firms urge FCC not to revoke ability to operate in US

WASHINGTON: The U.S. units of China Telecom Corp's and China Unicom urged the Federal Communications Commission (FCC) not to revoke the company's nearly two-decade old authorization to provide international telecommunications services to and from the United States.
China Telecom (America)'s filing late Monday came after the U.S. Justice Department and other federal agencies in April asked the FCC to act, citing national security concerns in a new flashpoint between Washington and Beijing.

China Telecom (Americas), the U.S. subsidiary of a People's Republic of China (PRC) state-owned telecommunications company, called the government's claims "unfounded" and argued the FCC should not revoke its right to operate in the United States "based solely on foreign policy concerns in the absence of any evidence whatsoever of specific misconduct."
It added the company's "conduct to date does not demonstrate any reasonable basis for the U.S. government's stated lack of trust."
The Justice Department, along with Homeland Security, Defense, State and Commerce Departments, in April cited "substantial and unacceptable national security and law enforcement risks associated with China Telecom's operations."
In April, the FCC issued show-cause orders warning it might shut down the US operations of three state-controlled Chinese telecommunications companies: China Telecom, China Unicom and Pacific Networks Corp and its subsidiary ComNet (USA).
FCC Chairman Ajit Pai said in April the agency had deep concerns "about these companies' vulnerability to the exploitation, influence, and control of the Chinese Communist Party."
China Unicom (Americas) in a June 1 FCC filing said it had "a two-decade track record as a valuable contributor to US telecommunications markets, a good record of compliance with its FCC regulatory obligations, and a demonstrated willingness to cooperate with US law enforcement agencies." Source

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