The US Federal Communications Commission took steps to block one of Hong Kong’s largest phone companies from accessing domestic telecom networks, citing national security concerns.
Controlled by PCCW, HKT (International) and its subsidiaries must “explain why the FCC should not commence revocation proceedings against them”, the agency Wednesday said in a statement. HKT currently has permission to interconnect with US networks, allowing calls and data to be exchanged directly.
“The FCC’s action on HKT today is an appropriate step towards ensuring the safety and integrity of our communications networks,” FCC Chairman Brendan Carr said in the statement. “The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China.”
Richard Li, the younger son of Hong Kong tycoon Li Ka-shing, is the chairman and largest shareholder of PCCW. His father’s company is entangled in the controversial sale of its global ports — including two in Panama — to a BlackRock-backed consortium, where it later invited a Chinese investor into the mix.
The deal has become a proxy for the rivalry between the US and China, where the younger Li’s talks to expand his insurance business into mainland China were stalled earlier after Beijing reacted with fury to the sale of the ports to the US firm.
US President Donald Trump said Wednesday he saw the US as locked in a trade war with China.
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The FCC didn’t immediately respond to a request for comment on the extent of HKT’s operations in the US. PCCW also didn’t immediately respond to an email outside of official work hours.
Carr has made securing US networks from foreign influence a major priority. Other companies that have lost their US network access include China Telecom (Americas) in 2021 and China Unicom Hong Kong in 2022.
