Senate report finds Chinese telecom groups operated in US without proper oversight

Three Chinese telecommunications firms were allowed to operate for roughly 20 years in the U.S. without appropriate oversight, according to a bipartisan report released by the Senate Permanent Subcommittee on Investigations released early Tuesday.

The report focuses on China Telecom Americas, China Unicom Americas and ComNet USA, claiming that appropriate agencies have failed to respond to national security threats they pose.

The Federal Communications Commission (FCC) relied on “Team Telecom” — an informal group drawing from the departments of Justice, Homeland Security and Defense — for its national security oversight of foreign telecom companies, according to the report.

But the group allegedly lacked the statutory authority or resources to fill that role.

Team Telecom only visited China Telecom Americas and ComNet USA twice in a decade and never interacted with China Unicom Americas, according to the report.

The report calls on the FCC to conduct a full review of the three companies and establish a clear process for revoking authorizations if need be.

It also lays out a series of steps for Congress to take on the issue, including formalizing Team Telecom and giving it official authority while preserving its composition.

The members wrote in the report that the administration “recently issued an executive order establishing a formal committee to review the national security and law enforcement risks posed by foreign carriers operating in the United States.”

However, the members concluded that “the new committee’s authorities remain limited, and as a result, our country, our privacy, and our information remain at risk.”