On Monday, the FCC’s International Bureau dismissed an application to deliver Mandarin Chinese programming from a studio located in Irwindale, California to XEWW-AM in Mexico for rebroadcast back into the U.S.. Some people, including Senator Ted Cruz, believe the station is a propaganda arm of the Chinese government.
The application was dismissed because the parties failed to include in their application a key participant, Phoenix Radio, which produces the Mandarin programming in its studio.
Phoenix Radio is owned by Phoenix TV. Senator Ted Cruz, a Texas Republican, praised the FCC’s decision to reject the bid. “Phoenix TV is a puppet of the Chinese Communist Party that broadcasts propaganda across the United States. Today’s decision sends an important message to the world that the U.S. will not allow China to exploit FCC loopholes and spread its propaganda over our airwaves.”
Phoenix Radio is partially owned by two entities with Chinese government ownership, Extra Steps Investment Limited and China Wise International Limited. The parties have 48 hours to cease broadcast operations. The Bureau formally dismissed the Permit to Deliver Programs to Foreign Broadcast Stations application of GLR Southern California and H&H Group USA as deficient as the application failed to include Phoenix Radio, as an applicant. Phoenix Radio’s known activities at this broadcast programming studio are such that, without reviewing its role as an applicant, the FCC could not evaluate the proposed service. Specifically, the broadcast programming subject to this application is supplied, created, and produced in a studio used, owned, and maintained by Phoenix Radio. If a revised application is filed that includes Phoenix Radio as an applicant, the Commission would review it under applicable law, including determining whether the grant of the application would serve the public interest under Section 309 of the Communications Act
Keep in mind that even though Cumulus has permission to have up to 100% foreign ownership, there is a clause in the waiver that clearly gives the FCC the right to deny any specific company or person whose ownership exceeds 50%. So if the government of China wants to buy Cumulus, the FCC can say no.
This is why I say “No!” to foreign equity and involvement, financial and otherwise, in radio and television broadcasting. I was disappointed to see the FCC recently grant the petition by Cumulus to allow up to 100% foreign ownership of U.S. broadcasting companies.
I just believe there is something very different about terrestrial broadcasting over the open airwaves, as opposed to a ‘closed’, paid medium like cable television, satellite radio, or a streaming service. With a paid service, listeners or viewers can affirmatively choose to consume a foreign-crafted production, including product with overt political, anti-American content. And, yes, I am consistent, in that I have no problem, at all, with foreign countries barring U.S. investment in their over-the-air broadcast stations.
Meanwhile, I think the FCC is being inconsistent on the foreign ownership front. Stop, now, Chairman Pai and Commissioners, across the board, with your allowance of ANY foreign ownership in U.S. broadcasting.