California IT Company with Alleged Chinese Ties Added to FCC's List of National Security Risks

WASHINGTON (CNA) - The U.S. Federal Communications Commission (FCC) on Thursday added Digitalsystem Technology to its list of companies posing a risk to U.S. national security, citing the California-based IT firm's connections to Chinese telecommunications enterprises and ownership by a Chinese national.

The FCC also denied Digitalsystem Technology's application to provide international telecommunications services, stating the company could be exploited by Chinese threat actors.

"The Chinese government and other threat actors could exploit any potential vulnerabilities to harm U.S. national security and law enforcement interests," the FCC said, expressing deep concern about the potential for U.S. communications content to be collected, interfered with, or redirected.

Digitalsystem Technology and the Chinese Embassy in Washington did not immediately respond to requests for comment.

The FCC cited Digitalsystem Technology's partnerships with Hong Kong's PCCW, China Unicom, and China Mobile as sources of concern.

Previously, the FCC had prohibited China Unicom, China Mobile, and China Telecom from providing international telecommunications services in the U.S. on national security grounds.

On October 15 last year, the FCC announced it was moving to revoke the U.S. operating authority of PCCW's subsidiary, HKT, a major telecommunications company in Hong Kong.

The FCC had previously proposed a draft rule to prohibit U.S. telecommunications carriers from interconnecting with Chinese telecommunications companies deemed national security risks. Chinese companies stated that such measures could cause serious disruptions to global communication networks.

Last month, the FCC announced it would ban the import of more equipment from several Chinese manufacturers, including Huawei, Dahua, ZTE, and Hikvision, marking the latest move by Washington to crack down on Chinese-made electronics, and also prohibited the import of new Chinese-made drones and routers.

The FCC also noted that Digitalsystem Technology's official website originally listed companies like Huawei, Dahua, Hikvision, and ZTE as partners, but later updated its content to refer to these companies as clients. (Compiled by Tsai Chia-min) 1150708

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