China’s Wireless Giants Under Congressional Scrutiny
China’s top three wireless providers—China Telecom, China Unicom, and China Mobile—are facing a significant investigation by a U.S. congressional committee. This inquiry aims to uncover more about their operations within the United States, particularly concerning their alleged support for the Communist Chinese government and its military. With a staggering subscriber base exceeding 1 billion as of September 2022, China Mobile stands as the largest wireless carrier globally, making this investigation particularly noteworthy.
Concerns Over Data Security
U.S. lawmakers have expressed serious concerns regarding the potential risks posed by these Chinese carriers’ cloud and internet businesses. They fear that these operations could facilitate unauthorized access to Americans’ personal data and intellectual property. The congressional committee has indicated that there is evidence linking high-profile cyberattacks to these carriers’ platforms in the U.S. This has prompted a bipartisan group from the House of Representatives Select Committee on China to utilize its subpoena powers—a rare move that underscores the gravity of the situation.
The Subpoena and Its Implications
The committee’s Republican chair, John Moolenaar, alongside top Democratic Representative Raja Krishnamoorthi, felt compelled to escalate the investigation after the three Chinese firms failed to respond to inquiries from a U.S. Commerce Department probe. Their lack of cooperation has now led to the possibility of being compelled to answer questions from Congress. This development highlights the increasing tension between the U.S. and China, particularly in the realm of technology and national security.
Cyber Attacks and National Security
One of the most alarming incidents prompting this investigation is the Volt Typhoon attack. According to the FBI, this cyber intrusion allowed China to access critical U.S. infrastructure, including telecommunications, energy, and water systems. Beijing has vehemently denied any involvement in these attacks, with a spokesperson from the Chinese embassy stating, “We oppose the U.S. over-stretching the concept of national security, using national apparatus and long-arm jurisdiction to bring down Chinese companies.”
Business Operations in the U.S.
Despite the scrutiny, the three Chinese carriers maintain small operations in the U.S., primarily focused on routing wholesale internet traffic and offering cloud services. In 2019, the Federal Communications Commission (FCC) denied China Mobile a license to provide telecom services to U.S. consumers. Subsequently, in 2021 and 2022, the FCC revoked the authorizations of China Telecom and China Unicom to operate in the U.S. market.
A spokesperson for the congressional committee noted that even with these bans, the Chinese firms have circumvented oversight by the FCC by running hardware, software, and cloud-based systems that do not require FCC approval. This has raised alarms, as the committee has received intelligence suggesting that these platforms may have facilitated cyber intrusions, data theft, and potential sabotage of U.S. infrastructure.
Deadline for Cooperation
The three Chinese carriers have been given until May 7th to comply with the committee’s requests for information. Failure to respond adequately could result in the companies being held in contempt of Congress, further escalating the already tense relationship between the U.S. and China.
Conclusion
As the investigation unfolds, the implications for U.S.-China relations could be profound. The scrutiny of these wireless giants not only highlights concerns over data security and cyber threats but also reflects broader geopolitical tensions. The outcome of this inquiry may set important precedents for how foreign telecommunications companies operate within the United States and how national security is prioritized in an increasingly interconnected world.