China Unicom’s US subsidiary filed comments with the FCC on June 9 opposing a proposed rule that would prevent American carriers from interconnecting with Chinese telecom operators on the national security “Covered List.” The company argues the ban would effectively break a critical segment of global communications infrastructure.

What the FCC is proposing

The proposal, which traces back to April 2026, targets data centers and Points of Presence operated by Chinese-funded telecom entities within the US. The rule would prohibit American carriers from maintaining interconnection agreements with operators on the FCC’s Covered List, a registry of companies deemed national security threats.

China Unicom’s argument is straightforward. Chinese-funded operators serve as essential gateways for telecommunications traffic flowing between the US and China. Cut those gateways, and you don’t eliminate the traffic. You just force it through less reliable, less transparent intermediaries.

This isn’t the first time the FCC has moved against Chinese telecom operators on US soil. In 2019, the commission denied China Mobile’s application to enter the US market entirely, citing national security concerns. By 2022, the FCC had revoked operating authority for both China Unicom Americas and China Telecom Americas, giving them transition periods to wind down operations.