US Communications Regulator moves to suspend China’s Telecom License in country

 

China Telecom - USA


US Federal Communications Commission (FCC), the Communications Regulator of United States of America has voted to revoke license of China Telecom citing national security concerns. The latest pushback by Washington is against possible infiltration by Chinese companies.

 

Under FCC’s decision China Telecom Americas would have to discontinue its services within USA within 60 days now. The largest telecommunication company in China had enjoyed license to provide telecommunications services in US for almost 20 days.

 

The news has widely impacted Chinese tech firms that have been listed in US to provide services. These firms’ stocks hit a huge stump as soon as the announcement was publicized. The stocks in Hong Kong also suffered rushed selling, resulting in plummeting of Hang Seng Index by over 3%, the most impacted being Alibaba, Tencent, XD and JD.com.

 

FCC has found that China Telecom “is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight”. The American regulator added that control of Chinese authorities over the company “raises significant national security and law enforcement risks by providing opportunities” for the company and the Chinese government “to access, store, disrupt, and/or misroute US communications”.

 

China Telecom America spokesperson responded to FCC’s decision by calling it highly “disappointing” and that it would “pursue all available options while continuing to serve our customers”.

 

US senators Rob Portman and Tom Carper, who had issued a report in 2020 on Chinese telecom companies’ operations in the US, praised the FCC decision in a joint statement that reiterated “substantial and serious national security and law enforcement risks”.

 

Former US President Donald Trump had brought the issue of national security threat posed by Chinese companies to the forefront. Trump administration had been successful in banning China’s Huawei from its 5G network as well as from that of its allies like UK and Australia.

 

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