Threats to US Networks: Oversight of Chinese Government-Owned Carriers

Not all international expansion of telecommunications carriers is in the United States’ national security interests. Some foreign governments seek to exploit the openness of America’s telecommunications market to advance their own national interests. One such country is China. Three state-owned carriers dominate the Chinese telecommunications market: China Mobile, China Telecom, and China Unicom, commonly referred to as the “Big Three.” In addition to shoring up a stable domestic market for these carriers, the Chinese government has encouraged its carriers to expand into global markets, including the United States. This expansion, however, raises national security concerns. US government officials have warned that Chinese state-owned carriers are “subject to exploitation, influence, and control by the Chinese government” and can be used in the Chinese government’s cyber and economic espionage efforts targeted at the United States.

This report details how the US federal government—particularly the Federal Communications Commission, Department of Justice, and Department of Homeland Security— historically exercised minimal oversight to safeguard US telecommunications networks against risks posed by Chinese state-owned carriers.