US-China trade war: America 'bans' Hong Kong's biggest telecom company; cites national security concerns

The US Federal Communications Commission (FCC) has taken steps to potentially revoke the access of HKT (International) Ltd., a major Hong Kong phone company controlled by PCCW Ltd., to domestic telecommunications networks, citing national security concerns, Bloomberg reported. In a statement, the FCC demanded that HKT and its subsidiaries “explain why the FCC should not commence revocation proceedings against them.” HKT currently holds permissions to interconnect with U.S. networks, enabling direct exchange of calls and data. The agency highlighted HKT’s affiliation with China Unicom Hong Kong Ltd., which lost its U.S. network access in 2022. China Unicom owns an 18.4% stake in PCCW.“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, as quoted in the report. “The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China.”PCCW, chaired by Richard Li, son of Hong Kong tycoon Li Ka-shing, generated approximately 13.7% of its 2024 revenue from regions outside greater China and Singapore, though specific countries were not disclosed in the annual report. The decision places Richard Li’s business in the midst of U.S.-China tensions, Bloomberg noted. Li’s father’s company, CK Hutchison Holdings Ltd., is separately involved in a controversial sale of global ports to a BlackRock Inc.-backed consortium, which has drawn scrutiny due to the inclusion of a Chinese investor. This ports deal has become a flashpoint in the broader U.S.-China rivalry, exacerbated by stalled talks for Li’s FWD Group Holdings Ltd. to expand into mainland China, Bloomberg reported in July.The FCC’s move aligns with its ongoing efforts to secure U.S. networks, following the revocation of access for other Chinese state-owned enterprises like China Telecom (Americas) Corp., based on recommendations from national security agencies, the FCC statement said. This action comes as President Donald Trump described the U.S. as engaged in a trade war with China, with a new 90-day truce deadline approaching in November.