US bans China’s largest network operator

October 27, 2021 22:57 GMT+7

The US decided to revoke the operating license of China Telecom, China’s largest telecommunications company, in this country’s territory.

China Telecom is the world’s largest state-owned carrier by number of subscribers. (Photo: Bloomberg)

The US Federal Communications Commission (FCC) has just voted to revoke China Telecom’s license, citing national security concerns. The FCC believes that China Telecom is an object of Chinese exploitation, influence and control. The FCC’s decision is based on recommendations from government agencies under former US President Donald Trump in 2020. The US wants to remove Chinese businesses from telecommunications infrastructure.

In response to the FCC’s “disappointing” decision, China Telecom said it would pursue all available options while continuing to serve customers. The carrier has denied that it threatens national security and has always cooperated with US authorities. China Telecom is the world’s largest state-owned carrier, by number of subscribers. In the US, the company sells mobile services to US companies and retail customers, targeting Chinese-Americans, tourists…

The FCC instructs “China Telecom USA to discontinue any domestic or international service it is providing under the authority of Section 214 within 60 days” of the date of the notice. China Telecom has been operating in the US for nearly 20 years.

In May, China Telecom and two compatriots, China Mobile and China Unicom, lost their right to appeal against being delisted on the New York Stock Exchange. That’s because the Trump administration introduced an investment “blacklist”.

The administration of President Joe Biden has also taken a tough stance on China, although earlier this month revived trade policy discussions as the two countries prepared for a high-level meeting between Biden and Chinese President Xi Jinping. Bin Binh.

US officials have long feared that Chinese telecommunications companies could disrupt or spy on US networks. FCC pushes rural carriers to replace Huawei equipment. Washington also wants to stymie Huawei’s 5G business and achieve some success.

Earlier this week, Republican lawmakers sent a letter to US Commerce Secretary Gina Raimondo, urging action, including tighter controls on US technology exports to China. The US has indicated a willingness to allow chip exports to some of the blacklisted companies, a move some members of Congress are trying to curb. Last week, Republican Congressman Michael McCaul released data showing that the Commerce Department had approved more than $100 billion in export licenses for Huawei and SMIC, China’s largest chipmaker.

Du Lam (According to WSJ)

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