Hong Kong Telecom (HKT) is “carefully reviewing” an order issued by the US telecom regulator, which has taken the initial step barring the company from operating in the country, citing national security concerns.
HKT – a subsidiary of PCCW, which is owned by Hong Kong tycoon Richard Li – is reviewing the order from the Federal Communications Commission (FCC) to “fully understand the situation,” the company said in an email reply to HKFP on Friday.
“We will appropriately respond to the relevant authorities and are committed to doing our utmost to fulfil our responsibilities to all stakeholders.”
The FCC issued an Order to Show Cause on Wednesday, demanding HKT and its subsidiaries “to explain why the FCC should not commence revocation proceedings against them.”
The FCC cited HKT’s affiliation with China Unicom (Americas), whose authorisation to provide international and domestic telecom services to and within the United States was revoked by the US regulator in 2022 due to “national security determinations.”
China Unicom owns 18.4 per cent of PCCW, according to Bloomberg.
“Today’s Order continues the FCC’s work of ensuring that [Chinese Communist Party]-controlled entities that pose national security risks to our country cannot connect to our telecom networks,” FCC chairperson Brendan Carr said in a statement on Wednesday.
“The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China,” Carr added.
FCC’s move marks an escalation in US-China tensions and reflects how companies in Hong Kong are increasingly caught in the rivalry between the world’s two largest economies.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, Richard Li’s father, has been embroiled in a controversy over a deal to sell its global ports business outside China, including two ports at the Panama Canal, to a US-led consortium.
The deal, announced in March, came after US President Donald Trump threatened to “take back” the Central American waterway, vital to global trade, from alleged Chinese control.
But it was met with severe backlash from Beijing, which criticised CK Hutchison for overlooking China’s national interests. Chinese regulators said in late March that they would review it.
CK Hutchison said in August that the deal, originally expected to be completed in April, would not close this year, as it sought Beijing’s approval, according to the Financial Times.
