U.S. FCC targets Hong Kong’s HKT telecom over national security concerns

The U.S. Federal Communications Commission (FCC) has initiated proceedings to potentially block HKT, one of Hong Kong’s largest telecommunications companies and a subsidiary of PCCW, from accessing U.S. domestic networks over national security concerns. The FCC has asked HKT to justify why its authorization to interconnect with American carriers should not be revoked. This move follows previous actions against China-linked telecom companies like China Unicom, which owns an 18.4% stake in PCCW and lost its U.S. network access in 2022. The FCC’s chairman emphasized protecting U.S. communications from foreign adversaries. The shares of HKT and its parent company PCCW fell significantly after the announcement. The decision is part of a broader U.S. strategy to curb Chinese influence in critical technology infrastructure, amid escalating U.S.-China trade tensions. HKT and PCCW derive a notable portion of their revenue from outside of China and Singapore, but the U.S. government remains cautious due to perceived Chinese government influence through ownership stakes and business ties. This regulatory move reflects rising geopolitical and security concerns involving Chinese-linked entities in global telecommunications.