FCC denies US firm with Chinese links approval to provide telecom services
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The Federal Communications Commission (FCC) logo is seen before the FCC Net Neutrality hearing in Washington February 26, 2015. The FCC is expected Thursday to approve Chairman Tom Wheeler's proposed "net neutrality" rules, regulating broadband providers
By David Shepardson
WASHINGTON, July 7 (Reuters) - The Federal Communications Commission said on Tuesday it is adding California-based Digitalsystem Technology to a list of companies posing risks to U.S. national security, citing links to Chinese telecom firms and its ownership by a Chinese national.
The FCC also said it was denying the Los Angeles-based IT company permission to provide international telecommunications services, saying it could be exploited by Chinese threat actors.
"There is significant risk that the government of China and other threat actors could exploit any vulnerabilities to the detriment of U.S. national security and law enforcement interests," the FCC said, citing concerns about the collection, disruption or misrouting of U.S. communications.
The company and Chinese Embassy in Washington did not immediately respond to a request for comment.
The FCC cited concerns about Digitalsystem Technology partnerships with Hong Kong-based PCCW, China Unicom and China Mobile.
Previously, the FCC barred China Mobile, China Telecom and China Unicom from providing international telecommunications services to the United States, citing national security concerns.
On October 15, the FCC said it was moving to revoke the ability of HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW, to operate in the United States.
The Trump administration is taking a tough line on Chinese telecom companies.
The FCC has proposed to prohibit U.S. telecommunications carriers from interconnecting with Chinese telecom firms deemed national security risks, which Chinese companies say could cause severe disruption to the global communications network.
Last month, the FCC said it would ban the import of more equipment from a group of Chinese manufacturers including Huawei, Dahua, ZTE and Hikvision in the latest move by Washington to crack down on Chinese-made electronic gear. It also banned new models of Chinese drones and routers from import.
The FCC also noted that Digitalsystem's website cited Huawei, Dahua, Hikvision, ZTE and others as partners, which was later updated to describe them as clients.
(Reporting by David ShepardsonEditing by Nick Zieminski and Bill Berkrot)
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