FCC bans US IT firm Digitalsystem alleged China links

The U.S. Federal Communications Commission (FCC) has banned American IT firm Digitalsystem Technology from providing international telecommunications services due to alleged links with Chinese telecom players. The decision adds to a growing list of actions taken by the U.S. government to restrict Chinese technology companies, based on information published by SDx Central.

Digitalsystem Technology, headquartered in Los Angeles, was added to the FCC's Covered List for its partnerships with Hong Kong operators China Mobile and China Unicom, and Beijing-based China Unicom. The FCC cited national security concerns, arguing that Digitalsystem and its affiliates could direct U.S. traffic through Hong Kong or mainland China, potentially exposing it to Chinese security and intelligence services. The firm, owned by a Chinese national, also had its Hong Kong-based sister company included in the ban, with the FCC stating Hong Kong is no longer sufficiently autonomous.

This action follows broader FCC efforts to curb Chinese influence in U.S. telecommunications, including bans on Chinese-made network equipment and scrutiny of subsea cable projects. The move also occurs amidst broader U.S.-China tensions in the technology sector, including concerns over AI model security and data extraction.

Source: SDx Central