The US Federal Communications Commission (FCC) added Digitalsystem Technology, a California-based IT firm owned by a Chinese national, to its list of companies posing national security risks on August 7, 2026. The FCC simultaneously denied Digitalsystem Technology’s application to provide international telecommunications services, citing concerns about exploitation by Chinese threat actors [1, 2, 3].

Digitalsystem Technology has established partnerships or cooperation agreements with Hong Kong-based PCCW, as well as Chinese telecom giants China Unicom and China Mobile. These connections raised red flags for the FCC, which noted a significant risk that the Chinese government and other threat actors could exploit system vulnerabilities to harm US national security and law enforcement interests. This could include interception, disruption, or misrouting of US communications, the FCC stated [1, 2, 3]. The agency said, "There is significant risk that the government of China and other threat actors could exploit any vulnerabilities to the detriment of US national security and law enforcement interests" [1].

Digitalsystem Technology’s website initially listed Huawei, Dahua, Hikvision, and ZTE as partners but later revised the listing to identify them as customers, adding to scrutiny over its ties with Chinese technology companies [2, 3].

This action continues the FCC’s ongoing effort to block Chinese telecom entities. The FCC has previously barred China Mobile, China Telecom, and China Unicom from providing international telecommunications services in the US on national security grounds [1, 2, 3]. Since October 15, 2025, the FCC has been revoking the operating authority of Hong Kong Telecom (HKT), a subsidiary of PCCW, in the US [2, 3].

In July 2026, the FCC introduced import bans on equipment from several Chinese manufacturers—including Huawei, Dahua, ZTE, and Hikvision—and prohibited new types of Chinese drones and routers to further restrict Chinese-manufactured technology products entering the US market [2, 3]. The FCC has also proposed banning US telecom operators from interconnecting their networks with Chinese firms deemed national security risks [2, 3].

Requests for comment from Digitalsystem Technology and the Chinese embassy in Washington went unanswered as of today [1, 2, 3].