HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW Ltd, agreed on Friday to halt its operations in the United States under pressure from the Federal Communications Commission, according to a consent decree reviewed by Reuters. The FCC said in October 2025 it was moving to revoke HKT's authority to operate in the US, citing national security concerns and the company's affiliation with China Unicom, a shareholder in PCCW.
Under the decree, HKT has agreed to stop international and domestic telecom services to and within the United States. The company must file an application with the FCC within 30 days to discontinue services and must end US services by September 1, 2027. PCCW declined immediate comment.
The agreement means the FCC will not proceed with the revocation case, which could have offered more detail on Washington's national security concerns. The FCC has previously barred China Mobile, China Telecom and China Unicom from providing international telecommunications services to the United States, citing broad national security concerns.
The Trump administration has continued an extensive crackdown on Chinese telecoms over the past year. On Thursday the FCC voted to ban all Chinese labs from testing US electronics starting from December 2028, and announced plans to soon bar Chinese telecom firms from direct access to US phone numbers on national security grounds. That plan would block Chinese IP network service providers from direct access and those using equipment from companies on the FCC's list of firms deemed national security risks, including Huawei and ZTE. Other measures under consideration include barring Chinese telecom firms from connecting to US networks and from operating their data centres in the US.
The telecom crackdown has drawn a strong reaction from Beijing. China said on Friday it firmly opposes the FCC action on labs, warning it would take necessary countermeasures if the US side persists in acting unilaterally.
Concerns about potential spying and other harms from Chinese access to US telecom data and infrastructure have grown in recent years. In late 2024, Washington said a Chinese state-sponsored cyber espionage group known as Salt Typhoon stole consumers' call records and US call data and infiltrated US telecommunications and telecom infrastructure firms. China has consistently denied any wrongdoing.
Analysis
Why This Matters
- The decree removes a major Hong Kong carrier from US telecom networks, showing the FCC is willing to convert revocation threats into negotiated exits.
- It narrows options for companies with Chinese ownership or links that want to operate in the US market, and it keeps US-China technology tensions on an upward path.
- Beijing has signalled it could retaliate over the FCC's lab-testing ban, so the next round of measures may not stay confined to telecoms.
Background
The FCC regulates which foreign carriers may provide services in the United States and has the power to revoke that authority on national security grounds. In recent years Washington has widened its scrutiny of Chinese-owned telecom firms, citing risks to US networks and data. HKT's parent PCCW has China Unicom as a shareholder, a link the FCC cited when it moved against HKT's US authority.
Key Perspectives
- FCC: moved to revoke HKT's US operating authority in October 2025, citing national security concerns and HKT's affiliation with China Unicom.
- China: said on Friday it firmly opposes the FCC's action on testing labs and warned it would take necessary countermeasures if the US side persists in acting unilaterally.
- PCCW: declined immediate comment.
What to Watch
- HKT's application to discontinue services, due within 30 days, and whether the FCC approves it without conditions.
- Whether Beijing follows through with countermeasures against US firms over the lab-testing ban.
- The FCC's planned ban on Chinese firms' direct access to US phone numbers, and whether the other measures under consideration, such as limits on network connections and data centres, are formally proposed.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedHKT agreed on Friday to halt its US operations under FCC pressure.US Top News and Analysis: “HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW Ltd , on Friday agreed to halt its operations in the United States under pressure from the Federal Communications Commission.”
- SupportedThe FCC said in October 2025 that it was moving to revoke HKT’s authority to operate in the US, citing national security concerns and its affiliation with China Unicom, a PCCW shareholder.US Top News and Analysis: “The FCC in October 2025 said it was moving to revoke the authority of HKT to operate in the United States, citing national security concerns and its affiliation with China Unicom , which is a shareholder in PCCW.”
- SupportedHKT agreed to stop international and domestic telecom services to and within the US.US Top News and Analysis: “Under a consent decree reviewed by Reuters, HKT has agreed to stop international and domestic telecom services to and within the United States.”
- Partly supportedHKT must file an FCC application within 30 days and end US services by September 2027.US Top News and Analysis: “HKT must file an application with the FCC within 30 days to discontinue services and must discontinue US services by September 1, 2027.”
- SupportedThe agreement means the FCC will not proceed with the revocation case.US Top News and Analysis: “The agreement means the FCC will not move forward with the revocation proceeding that could have offered more details on Washington's national security concerns.”
- SupportedThe FCC has previously barred China Mobile, China Telecom and China Unicom from providing international telecommunications services to the US.US Top News and Analysis: “The FCC has previously barred China Mobile , China Telecom and China Unicom from providing international telecommunications services to the United States, citing broad national security concerns.”
- SupportedThe Trump administration has continued an extensive crackdown on Chinese telecoms over the past year.US Top News and Analysis: “The Trump administration has continued an extensive crackdown on Chinese telecoms over the past year.”
- SupportedOn Thursday, the FCC voted to ban all Chinese labs from testing US electronics starting in December 2028.US Top News and Analysis: “The FCC on Thursday voted to ban all Chinese labs from testing US electronics starting from December 2028.”
- SupportedThe FCC announced plans to soon bar Chinese telecom firms from direct access to US phone numbers, including providers using equipment from firms on its national-security-risk list such as Huawei and ZTE.US Top News and Analysis: “The FCC also announced on Thursday it plans to soon ban Chinese telecom firms from direct access to US phone numbers on national security grounds. The plan would bar Chinese IP network service providers from direct access and those that use equipment from companies on the FCC's list that pose national security risks, including Huawei and ZTE.”
- SupportedOther measures under consideration include barring Chinese telecom firms from connecting to US networks and operating data centres in the US.US Top News and Analysis: “Other measures under consideration by the FCC include barring Chinese telecom firms from connecting to US networks and from operating their data centers in the US.”
- SupportedChina said on Friday it firmly opposed the FCC action on labs and warned it would take countermeasures if the US persisted in acting unilaterally.US Top News and Analysis: “China said Friday it firmly opposes the FCC action on labs, warning it would take necessary countermeasures "if the US side persists in acting unilaterally."”
- SupportedIn late 2024, Washington said Salt Typhoon stole consumers’ call records and US call data and infiltrated US telecommunications and telecom infrastructure firms.US Top News and Analysis: “In late 2024, Washington said a Chinese state-sponsored cyber espionage group known as Salt Typhoon stole consumers' call records and US call data and infiltrated US telecommunications and telecom infrastructure firms.”
