The Senate Investigations Subcommittee said the FCC needs to come up with a "clear standard" for revoking a foreign telecom carrier's authorization to operate in the U.S. 

Related: FCC Flags More Chinese Telecoms 

"Telecommunications companies must understand the circumstances under which authorizations could be revoked and be afforded due process to challenge potential revocation," the committee said in a new report, "Threats to U.S. Networks: Oversight of Chinese Government-Owned Carriers." 

The FCC is currently reviewing whether China Unicom America, China Telecom America, and ComNet should be able to continue to hold licenses to operate in the U.S. (connect with U.S. networks). 

The FCC said Friday (April 24) that it had issued "show cause" orders directing them to justify why the FCC should not start proceedings to revoke their licenses. 

Related: China Telecom Has Some Explaining to Do, Says FCC

But while urging due process for foreign telecoms, the committee report also concludes that: "[t]he Chinese government engages in cyber and economic espionage efforts against the United States and may use telecommunications carriers operating in the United States to further these efforts." 

It concludes that the national security concerns over China Mobile USA, whose license the FCC voted earlier to revoke, apply to China Unicom America, China Telecom America, and ComNet, which the committee said are all Chinese state-owned carriers. 

Asked about the report Tuesday (June 9), FCC chairman Ajit Pai said the FCC was continuing to work on those reviews, and was giving them due process that would not be available in China. 

In a letter to the committee, China Unicom Americas (CUA) said it is "not subject to the exploitation, influence, or control of the Chinese government," adding "CUA itself has never received, and would not accept, any instructions from the Chinese government on how to run its operations. "

CUA has told the FCC that if it evaluates the company on the merits and facts, it will find that the telecom is a stand-alone operation that adheres to U.S. law, rules and regulations and poses no threat to U.S. network security. 

China Unicom Americas (CUA) said that if the FCC evaluates the company on the merits and fact, it will find that the telecom is a stand-alone operation that adheres to U.S. law, rules and regulations and poses no threat to U.S. network security. 

That came in a response to the FCC, which gave the company until June 1 to explain why the FCC should not kick it out of U.S. networks.  

 Related: FCC Targets Other Chinese Telecoms

The FCC had issued a show cause order to it and other Chinese telecoms, stemming from what the FCC said was "our deep concern—one shared by the U.S. Departments of Commerce, Defense, Homeland Security, Justice, and State and the U.S. Trade Representative—about [this company's] vulnerability to the exploitation, influence, and control of the Chinese Communist Party, given that they are subsidiaries of Chinese state-owned entities." 

The FCC said the U.S. "simply cannot take a risk and hope for the best when it comes to the security of our networks.” 

It has also issues such orders to China Telecom (Americas), Pacific Networks and ComNet.  

In its response to the FCC, CUA said that it is not subject to undue Chinese government influence, pointing out that it no director or executive had been appointed by that government and that its current president was recruited through a competitive process.  

China Telecom Americas is registered in California and operates out of the D.C. suburb of Herndon, Va. It provides "global integrated telecommunications services including international data networking, voice, IP and value added solutions." 

"CUA has never received any instructions regarding how to run its operations from the Chinese government," it said.  

CUA said its response to the FCC "show cause" order, a mandate to show cause as to why the FCC should not pull its license, contained "extensive documentation supporting that CUA will not pose risks to the national security of the U.S., including its ownership, governance, and clean track record." 

It also said it would be willing to talk to law enforcement or the FCC about resolving any issues or concerns, including signing a national security agreement.  

"Threatening to abruptly end CUA operations would destroy the jobs of U.S. citizens and permanent residents, threaten financial losses for U.S. investors and cause economic disruption for U.S. companies who rely on CUA services," it told the FCC.  

The FCC has given China Unicom Americas extra time to explain why the FCC should not kick it out of U.S. networks. 

The FCC's International Bureau, Wireline Competition Bureau, and Enforcement Bureau had given them 30 days from April 24 to tell them why the FCC "should not initiate a proceeding to revoke China Unicom Americas’ domestic and international section 214 authorizations" that allow it to operate in the U.S.

That was to include info on "certain ownership questions." 

China Unicom Americas asked for an additional 30 days--to May 23--but the FCC decided to give it until June 1. 

Related: FCC Flags More Chinese Telecoms 

The FCC did not explain either why it granted the extension or why it did not give them all the time they asked for. 

But when the FCC first sought China Unicom America's response, it said: "The Show Cause Orders reflect our deep concern—one shared by the U.S. Departments of Commerce, Defense, Homeland Security, Justice, and State and the U.S. Trade Representative—about [this company's] vulnerability to the exploitation, influence, and control of the Chinese Communist Party, given that they are subsidiaries of Chinese state-owned entities. We simply cannot take a risk and hope for the best when it comes to the security of our networks.”