The Federal Communications Commission announced Tuesday that it is placing a California-based technology company called Digitalsystem Technology on its list of firms considered threats to U.S. national security.
The Los Angeles-based IT company has been denied permission to provide international telecommunications services, with the FCC pointing to the company’s connections to Chinese telecom firms and the fact that it is owned by a Chinese national.
“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 stated, raising alarms about the potential collection, disruption, or misrouting of American communications.
Neither Digitalsystem Technology nor the Chinese Embassy in Washington responded to requests for comment.
Among the concerns raised by the FCC were the company’s business partnerships with Hong Kong-based PCCW, as well as China Unicom and China Mobile — two carriers that the FCC had previously barred from providing international telecom services to the United States on national security grounds.
On October 15, the FCC also moved to revoke the ability of HKT, a major Hong Kong telecom carrier and subsidiary of PCCW, to continue operating in the United States.
The Trump administration has taken an aggressive stance toward Chinese telecommunications companies overall. The FCC has put forward a proposal that would prohibit U.S. telecom carriers from connecting their networks with Chinese firms flagged as national security risks — a move Chinese companies have warned could cause serious disruptions to global communications.
Last month, the FCC announced a ban on importing additional equipment from several Chinese manufacturers, including Huawei, Dahua, ZTE, and Hikvision. New models of Chinese-made drones and routers were also prohibited from being imported into the country.
Regulators also noted that Digitalsystem Technology’s website had previously listed Huawei, Dahua, Hikvision, ZTE, and others as company partners. The site was later changed to refer to those companies as clients instead.
