What it does The opinion holds that the FCC’s findings—that China Telecom posed an unacceptable national-security risk because of Chinese government ownership and control and the company’s ability to access, monitor, disrupt, and misroute U.S. communications—were supported by reasoned decisionmaking and substantial evidence in the unclassified record. It also upheld the FCC’s determination that China Telecom breached its 2007 Letter of Assurances by failing to protect U.S. records from unauthorized foreign access and failing to notify executive-branch agencies of two FCC applications. The court rejected challenges to the paper-hearing process, finding no statutory, regulatory, or constitutional requirement for discovery, a live hearing, a neutral adjudicator, or another opportunity to cure.

Who it affects The decision directly affects China Telecom and affirms the FCC’s authority to revoke section 214 authorizations based on prospective national-security and law-enforcement concerns, including risks associated with foreign ownership and control. It also reinforces the role of DOJ, DHS, DoD, and other executive-branch agencies in assessing those risks.

Why it matters This is a major judicial validation of the FCC’s national-security revocation framework. The court emphasized that the FCC need not wait for a cyber or communications-security risk to materialize and that its judgment may rest on informed risk assessment. Although the court reviewed classified materials in camera for possible exculpatory information, it expressly based the merits decision solely on the unclassified record.

Key dates and numbers

• July 17, 2007: China Telecom’s Letter of Assurances.
• April 2020: Executive-branch agencies recommended revocation.
• November 2, 2021: FCC Revocation Order, FCC 21-114.
• January 2022: deadline for discontinuing authorized services.
• September 20, 2022: oral argument; December 20, 2022: decision.
• No. 21-1233; one domestic and two international section 214 authorizations.