Friday’s addition to the Federal Communications Commission’s (FCC) list of communication equipment and service providers deemed to be threats to U.S. security by Russia’s AO Kaspersky lab, China Telecom Americas (Americas) Corp, and China Mobile International USA by the FCC.
Last year, five Chinese companies were named by the regulator as first on the list. ZTE Corp was one of them. This list was created under a 2019 law. Kaspersky is Russia’s first listed company.
Brendan Carr, FCC Commissioner, stated that the new designations will “help secure our networks against threats posed by Chinese or Russian state-backed entities trying to engage in spying and other harm America’s interest.”
U.S. officials long believed that Kaspersky software could allow American networks to be exposed to Russian malign activities. Federal networks banned Kaspersky’s antivirus product in 2017. Moscow-based Kaspersky has repeatedly denied that it is a Russian tool.
The FCC announcement that named Kaspersky did not mention Russia’s invasion in Ukraine or President Joe Biden’s recent warnings about possible cyberattacks by Russia as a response to sanctions and support for Ukraine.
Kaspersky stated in a statement that the FCC decision disappointed it and claimed it was made “on political grounds”. According to Kaspersky, the move was not supported and was a reaction to the geopolitical environment rather than an evaluation of the integrity of Kaspersky’s products or services.
Friday’s statement by the Chinese Embassy in Washington stated that the FCC had “abused state power” and attacked Chinese telecom operators without any factual basis. The U.S. must immediately end its unjustified suppression of Chinese companies.
It stated that China would take all necessary steps to protect the legitimate rights and interests of Chinese companies.
The Chinese companies declined to comment immediately.
The FCC canceled the U.S. authorization of China Telecom (Americas) in October. It stated that it was “subject to exploitation and influence by the Chinese government.” [nL1N2RM1QE]
In its decision to list them on the threat list, the FCC referenced its previous decisions to deny or withdraw the American operations of Chinese telecom companies.
The FCC also revoked U.S. authorizations for China Unicom, Pacific Networks, and its wholly-owned subsidiary ComNet.
The FCC rejected China Mobile’s offer to provide U.S. telecom services in 2019, citing national security threats.
The FCC’s $8 billion annual Universal Service Fund cannot be used to buy or maintain products by companies that are included on the “covered” list. This fund supports telecommunications services for rural areas and low-income customers, as well as facilities like schools, libraries, and hospitals.
Last year, the FCC also identified Hytera CommunicationsHangzhou Hikvision Digital Technology and Dahua Technology as security risks.
Jessica Rosenworcel, FCC Chair, stated that the agency collaborated closely with U.S. security agencies to update this list and will add companies if necessary.