Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
People walk past a PCCW sign in Hong Kong.
Mike Clark | AFP | Getty Images
US regulators have moved to block one of Hong Kong’s biggest telecommunications companies from accessing local networks, citing national security concerns.
US Federal Communications Commission announced on Wednesday that proceedings for a potential ban had begun HKT Trust and HKT Ltd and its subsidiaries from interconnecting with US networks, escalating concerns about its ties to China.
The government agency asked HKT, which is a subsidiary of the information and communications technology giant PCCWto justify why his permissions should not be revoked. HKT’s current hold authorizations allow direct exchange of calls and data with US carriers.
China Unicomwhich owns approx 18.4% of PCCWlost its own US grid access in 2022 over similar concerns.
“Today’s FCC action regarding HKT is an appropriate step toward ensuring the safety and integrity of our communications networks,” FCC Chairman Brendan Carr said in a statement.
“The FCC will continue to protect America’s networks against intrusion by foreign adversaries such as China.”.“
Hong Kong-listed HKT shares fell more than 5%, while PCCW was down 3.6% in Thursday trading.
The share price of HKT and PCCW
According to their 2024 annual reports. HKT and PCCW received about 13% of its 2024 revenue from regions outside of greater China and Singapore, although specific countries were not detailed. HKT accounts for around 90% of the group’s total revenue.
HKT told CNBC in a statement that it is carefully reviewing the FCC’s order. “We will respond appropriately to the relevant authorities and are committed to doing our best to fulfill our responsibilities to all stakeholders,” the statement said.
Under Carr’s leadership, the FCC has expanded its efforts to drive Chinese state-linked entities, including China Telecom, Pacific Networks and ComNet, out of US markets.
On Friday, the FCC announced that major US online retail websites have removed millions of listings for banned Chinese electronics as part of their broader crackdown in China.
Caught in US-China trade tensions
PCCW is majority-owned by Hong Kong tycoon Richard Li, son of billionaire Li Ka-shing, who has increasingly found his business in the crossfire of US-China trade tensions.
FWD groupowned by Li’s Pacific Century Group, has recently faced obstacles in its expansion into mainland China amid a backlash from regulators in China, Bloomberg reported in July.
In March, Beijing it is reported instructed state-owned firms to pause new deals with businesses linked to Li Ka-shing and his family after their conglomerate CK Hutchison agreed to transfer stakes in more than 40 global ports – including two in Panama – to a consortium led by BlackRock.
The port deal at a standstill after Beijing objected to the exclusion of Chinese investors, with CK Hutchison pointing it out no more plans to complete the deal in 2025.
The FCC’s latest move against HKT also comes as US President Donald Trump escalates his trade war with China.
