Hong Kong Telecom Halts US Operations Under Pressure

HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW Ltd, agreed on October 30 to halt its domestic and international operations in the United States under pressure from the Federal Communications Commission.

Consent Decree Sets September 2027 Exit Deadline

Under the terms of a binding consent decree reviewed by Reuters, the carrier must completely wind down its telecom footprint across the country by September 1, 2027. The agreement requires the company to file a formal application with regulators within 30 days to discontinue its services. PCCW declined immediate comment on the settlement.

Regulatory Pressure Triggers Broader Chinese Tech Bans

The regulatory squeeze on HKT stems from an escalation that began in October 2025, when the commission first moved to strip the carrier of its operating authority. Regulators cited deep national security risks and the company’s corporate ties to China Unicom, which holds shares in parent firm PCCW. This action mirrors prior FCC bans blocking China Mobile, China Telecom, and China Unicom from running international services in the United States. The commission voted on October 29 to outlaw all Chinese testing labs for US electronics beginning in December 2028.

Beijing Issues Warnings Over Unilateral US Crackdowns

The widening telecom purge has drawn an immediate and sharp rebuke from Beijing. China announced on October 30 that it firmly opposes the lab restrictions, warning it would take necessary countermeasures if the US side persists in acting unilaterally, according to the article. The ongoing friction follows a late 2024 disclosure by Washington alleging that a state-sponsored Chinese cyber espionage collective known as Salt Typhoon infiltrated US telecom infrastructure and stole customer call records. China has consistently denied any wrongdoing.