US Blacklists California Tech Firm Over China Ties, Citing National Security Risks

In a fresh escalation of the ongoing US-China tech rivalry, the Federal Communications Commission (FCC) has blacklisted California-based Digitalsystem Technology, denying it permission to provide international telecommunications services. The FCC cited national security concerns, specifically pointing to the firm's Chinese ownership and alleged operational links to major Chinese telecom companies. This move signals Washington's continuing aggressive stance to protect American communication networks from potential data exploitation and foreign influence. The decision comes amidst a broader, sustained US-China tech crackdown, where Washington has repeatedly targeted companies perceived as threats to national security. The FCC highlighted Digitalsystem Technology partnerships with firms like PCCW, China Unicom, and China Mobile, all of which have previously faced US restrictions or bans. This action echoes past measures against Chinese tech giants such as Huawei and ZTE, and more recently, the US Department of Defense expanded its 'Chinese military companies blacklist' in June 2026 to include major players like Alibaba and Baidu. With Digitalsystem Technology now on the FCC 'Covered List,' the immediate impact will be the cessation of its international telecom operations in the US, with no immediate public response from the company or the Chinese Embassy. This development suggests a continued tightening of US regulatory scrutiny on any entity with perceived ties to Beijing's tech or defense sectors. Readers should watch for potential retaliatory measures from China and how other US-based firms with similar ownership structures might be impacted.