The Federal Communications Commission (FCC) in the United States is preparing to revoke the operating license of Hong Kong’s telecommunications operator HKT International (HKT) in the U.S., citing national security concerns. HKT International is a subsidiary of PCCW, a telecommunications company owned by Victor Li, the son of Hong Kong billionaire Li Ka-shing.
On Wednesday, the FCC took the first step towards revoking HKT (International) Limited’s authorization to operate in the U.S. or provide international and domestic telecommunication services to the U.S. In particular, the FCC’s International Affairs Office (OIA), Wireline Competition Bureau (WCB), and Enforcement Bureau (EB) issued a show-cause order to HKT and its wholly-owned subsidiaries, instructing them to explain why FCC should not initiate the revocation process.
The statement emphasized that HKT is affiliated with an entity controlled by the Chinese Communist Party – China Unicom (Americas) – which has been placed on the FCC blacklist for national security reasons.
Currently, Hong Kong Telecom has been allowed to interconnect with U.S. networks, enabling direct exchange of calls and data.
FCC Chairman Brendan Carr stated in the press release: “Today’s order continues the FCC’s work to ensure that entities that pose a national security risk to our country and are controlled by the Chinese Communist Party are unable to connect to our nation’s telecommunications networks.”
Carr noted that Hong Kong Telecom is a subsidiary of China Unicom, which is already on the blacklist. The actions taken by the FCC against HKT are deemed necessary to ensure the security and integrity of communication networks. The FCC will continue to protect U.S. networks from infiltration by foreign adversaries like the Chinese Communist Party.
If the aforementioned revocation decision takes effect, HKT will be prohibited from operating in the U.S. or providing international and domestic telecommunication services to the U.S.
Carr has made safeguarding U.S. networks against foreign influence a top priority. Other companies that have been denied or had their U.S. licenses revoked by the FCC include China Mobile International (USA) in 2019, China Telecom (Americas) in 2021, China Unicom (Americas) Operations Limited (China Unicom) in 2022, Pacific Networks Corp in 2022, and ComNet (USA) LLC in 2022.
The FCC’s press release also directed HKT’s wholly-owned subsidiaries PCCW Global, PCCW Global Limited, Gateway Global Communications Inc., and PCCW Global UK to provide explanations to the FCC on why the revocation of their authorization should not be initiated.
Li Ka-shing’s conglomerate, CK Hutchison, found itself in the midst of tensions between the U.S. and China previously as it sold its Panamanian port operations to a consortium led by Blackstone, causing ripples in U.S.-China relations.