China says US claims about national security risks from telecom are false

China said on Fridaythat USclaims about risks to national security were completely false, following a USdecision to haltChinaTelecom USoperations.

The USFederal Communications Commission (FCC) said on Thursdayit had begun the process of revokingChinaTelecom's authorisation to operate in the United States as it took further steps to crack down onChina's role in UStelecommunications.

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"We once again urge the USto stop generalizing the concept of national security, stop suppressing specific Chinese companies unreasonably, and to truly provide a fair, just, and non-discriminatory environment for normal cooperation between the countries," said Hua in a regular news briefing.

FCC Chairman Ajit Pai noted several USgovernment agencies had recommended the revocation citing national security concerns. Pai said there are "significant concerns" thatChinaTelecom will be forced to comply with the Chinese government's requests for information, including communications intercepts.ChinaTelecom, the largest Chinese telecommunications company, has had authorisation to provide telecommunications services for nearly 20 years.

The FCC in April had warned it might shut down the USoperations of three state-controlled Chinese telecommunications companies, citing national security risks, includingChinaTelecom Americas as well asChinaUnicom Americas, Pacific Networks Corp, and its wholly-owned subsidiary ComNet (USA) LLC.

The USJustice Department and other federal agencies in April called on the FCC to revokeChinaTelecom's ability to operate in the United States.

In May 2019, the FCC voted unanimously to deny another state-owned Chinese telecommunications company,ChinaMobile Ltd, the right to provide services in the United States, citing risks that the Chinese government could use the approval to conduct espionage against the USgovernment.

The FCC also on Thursday rejected a petition from Huawei Technologies Co Ltd asking the agency to reconsider its decision to designating the Chinese company as a U.S. national security threat to communications networks.

The FCC said in June it had formally designatedChina’s Huawei and ZTE Corp as threats, a declaration that bars USfirms from tapping an $8.3 billion government fund to purchase equipment from the companies. The FCC affirmed its ZTE designation last month.

The FCC on Thursday also finalized rules that require carriers with ZTE or Huawei equipment to "rip and replace" that equipment and created a reimbursement program to subsidize smaller carriers to remove and replace those services and equipment.

Pai noted the commission "can’t actually implement the reimbursement program unless and until Congress appropriates the necessary funding."

Huawei said in a statement it "is disappointed with the FCC’s decision to force the removal of our products from telecommunications networks. This overreach puts UScitizens at risk in the largely underserved rural areas – during a pandemic - when reliable communication is essential."