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The United States widened its campaign against Chinese-linked technology firms by blacklisting a California-based telecommunications company over concerns that it could pose a threat to national security, marking the latest escalation in Washington’s long-running effort to curb Beijing’s influence over global communications networks.
The Federal Communications Commission (FCC) added Los Angeles-based Digitalsystem Technology to its “Covered List” of entities that present unacceptable risks to US national security. The regulator also denied the company authority to provide international telecommunications services, citing its ownership by a Chinese national and its business relationships with major Chinese telecom operators.
The decision comes as the Trump administration intensifies restrictions on Chinese technology companies, extending scrutiny beyond telecom equipment manufacturers to firms operating in communications services and network infrastructure.
“There is significant risk that the government of China and other threat actors could exploit any vulnerabilities to the detriment of US national security and law enforcement interests,” the FCC said in its order.
According to the regulator, allowing the company to operate international telecommunications services could create opportunities for Chinese actors to intercept, reroute, disrupt or collect sensitive communications involving US businesses, government agencies and consumers.
The FCC said its investigation found that Digitalsystem Technology maintained commercial relationships with several Chinese telecommunications companies, including Hong Kong-based PCCW as well as state-backed operators China Mobile and China Unicom.
The commission also noted that the company’s website had previously identified Huawei, ZTE, Hikvision and Dahua Technology as partners. The website was later updated to describe those companies as clients instead.
All four Chinese technology companies have faced US sanctions or import restrictions in recent years over national security concerns.
The FCC said these links, combined with the company’s ownership structure, raised sufficient concerns to justify placing the firm on its national security risk list.
Part of a broader technology offensive
The latest action is part of a years-long effort by Washington to reduce reliance on Chinese telecommunications infrastructure.
The FCC has previously revoked or denied operating authority for China Mobile, China Telecom and China Unicom to provide telecommunications services in the United States after concluding that they were vulnerable to influence by the Chinese government.
In October, the commission also moved to revoke the US operating authority of HKT, one of Hong Kong’s largest telecom carriers and a subsidiary of PCCW.
More recently, the FCC proposed preventing US telecommunications carriers from directly interconnecting with Chinese telecom firms that it considers national security risks. Chinese companies have argued that such restrictions could disrupt international communications networks and affect global connectivity.
Crackdown extends to Chinese-made equipment
Washington has simultaneously tightened restrictions on Chinese-made telecommunications and surveillance equipment.
Last month, the FCC announced plans to ban imports of additional products from Chinese manufacturers including Huawei, ZTE, Hikvision and Dahua. It also prohibited imports of new Chinese-made drone and router models, expanding an existing list of restricted technology products.
The measures reflect growing US concerns that communications infrastructure supplied or operated by Chinese companies could be used for cyber espionage, surveillance or disruption during periods of geopolitical tension.
Beijing has consistently rejected such allegations, arguing that the United States is using national security as a pretext to suppress Chinese technology companies and gain a competitive advantage.
