According to Reuters, Hong Kong's largest telecommunications operator, Hong Kong Telecom ( HKT ), has agreed to terminate its domestic and international services in the United States.

Last October, the Federal Communications Commission (FCC) of the United States ordered the company to explain why it should not revoke the rights of Hong Kong Telecommunications and its subsidiaries to provide services in the United States. Now, according to a report by Reuters, Hong Kong Telecommunications has agreed to cease providing international and domestic telecommunications services to the United States and within its territory, under an order of consent.

The telecommunications operator must submit an application to FCC to cease these services within 30 days and must terminate its operations in the United States by no later than September 1, 2027.

FCC This measure is the latest action taken by them against Chinese-funded telecommunications operators on national security grounds. FCC In this case, it was also mentioned that Hong Kong Telecom has a connection with the Chinese government through China Unicom. China Unicom, which is controlled by Beijing, holds 18% of the shares in Telekom Holdings PCCW, and Telekom Holdings is the controlling shareholder of Hong Kong Telecom, holding 52% of the shares.

Over the past seven years, FCC has imposed bans on China Mobile, China Telecom, and China Unicom on grounds of national security and law enforcement. FCC indicates that the American operations of these Chinese companies are vulnerable to exploitation and influence by the government of the People's Republic of China.

Symbolic meaning predominates.

Hong Kong Telecom has not made any public comments, but a company spokesperson told the South China Morning Post that the company still “fully complies with all applicable regulatory requirements.”

Cable & Wireless Communications is controlled by Li Zekai, who is the son of 98-year-old Hong Kong tycoon Li Ka-shing. Li Ka-shing currently oversees Cheung Kong Hutchison Whampoa, which is the controlling shareholder of Hutchison Telecommunications Three, Hutchison Asia Telecom, and Hutchison Telecommunications Group.

This move is of great symbolic significance. The majority of Hong Kong Telecom's revenue comes from its local broadband, mobile, and enterprise services in Hong Kong. FCC states that the actual impact will be felt in its international business department PCCW Global, which provides international services to and from the United States, as well as inter-state domestic services covering 30 states in the US.

The Chinese Ministry of Commerce called on FCC to revoke that order and complained that FCC is ignoring the statements of Chinese officials and is "seriously damaging" Sino-US trade relations.

On Monday, the stocks of Hong Kong Telecom listed in Hong Kong fell by 1.2%.