Threats to U.S. Networks: Oversight of Chinese Government-Owned Carriers

Publication

Threats to U.S. Networks: Oversight of Chinese Government-Owned Carriers

Abstract

The Permanent Subcommittee on Investigations, part of the Senate Committee on Homeland Security and Governmental Affairs, initiated an inquiry into the adequacy of U.S. Federal Government oversight regarding Chinese state-owned carriers authorized to provide international telecommunications services within the United States. This report outlines historically minimal oversight by key agencies– specifically the Federal Communications Commission (FCC), the Department of Justice (DOJ), and the Department of Homeland Security (DHS) – in safeguarding U.S. telecommunications networks from risk associated with these carriers. The FCC’s Section 214 allows authorized companies to operate indefinitely without oversight, potentially exposing the U.S. to economic, national security, and law enforcement risks. Despite security agreements with two Chinese carriers before 2010, the DOJ and DHS conducted only two site visits to each carrier (four total) since then, with three occurring between 2017 and 2018. This lack of oversight jeopardized American communications safety and national security. Following the Subcommittee's investigation, agencies have heightened scrutiny of Chinese state-owned carriers, and the administration has issued an executive order establishing a committee to review national security and law enforcement risks posed by foreign carriers operating in the U.S.