From PC Mag: The Federal Communications Commission is designating a California IT firm as a national security risk, in part because its CEO is a Chinese citizen.
Digitalsystem Technology is headquartered in the Los Angeles area, and offers enterprise services such as data center management, networking, and VoIP conferencing. In 2024, it applied to supply international telecommunications services. But on Tuesday, the FCC denied the application and placed the firm on its Covered List as an “unacceptable risk to the national security of the United States.”
The FCC cited a recommendation from a White House committee that found the communication services that Digitalsystem sought to provide “could be exploited by the PRC [People’s Republic of China] and Hong Kong-based threat actors to the detriment of US interests.”
The committee also flagged the company, noting “mitigation measures are infeasible in light of the inconsistent and changing responses by Digitalsystem, which undermine the candor and reliability required of any national-security mitigation partner, and Digitalsystem’s business plans.”
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