Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/2

THREATS TO U.S. NETWORKS: OVERSIGHT OF CHINESE GOVERNMENT-OWNED CARRIERS

TABLE OF CONTENTS

I.IIEXECUTIVE SUMMARY

1

II.IFINDINGS OF FACT AND RECOMMENDATIONS

8

III.BACKGROUND

16

III.A.China Views the Telecommunications Industry as Critical to National Priorities

16

III.B.China Heavily Regulates its Telecommunications Industry and Carriers

17

III.B.1.China Heavily Restricts Foreign Telecommunications Investments

17

III.B.2.China Exerts Control over Domestic Carriers

20

III.B.3.China Encourages State-Owned Telecommunications Carriers to Expand Internationally

21

III.C.The United States Government Has Highlighted National Security Concerns Associated with Chinese State-Owned Carriers Operating within the United States

22

III.B.1.The Chinese Government Engages in Extensive Cyber and Economic Espionage Efforts against the United States

23

III.B.2.Chinese State-Owned Companies are Subject to Control by the Chinese Government

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III.B.3.Chinese State-Owned Carriers Can Facilitate the Chinese Government's Espionage Efforts by Hijacking Data through Their Relationships with U.S. Carriers

29

IV.EFFORTS TO MITIGATE NATIONAL SECURITY RISKS OF FOREIGN CARRIERS OPERATING IN THE UNITED STATES

32

III.A.The FCC Regulates the Operations of Foreign Telecommunications Carriers in the United States

32

III.B.1.The FCC Authorizes Carriers to Provide Telecommunications Services in the United States Pursuant to Section 214 of the Communications Act of 1934

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III.B.2.The FCC Must Determine that International Section 214 Authorization Serves the Public Interest, but It Relies on the Executive Branch to