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Trump moves to block China Mobile's US entry, citing security concerns

Trump moves to block China Mobile's US entry, citing security concerns

NTIA is a branch of the Commerce Department.

July 3 (Reuters) - The U.S. government moved on Monday to block China Mobile from offering services to the U.S. telecommunications market, recommending its application be rejected because the government-owned firm posed national security risks.

China Mobile, a Chinese government-owned company, has been blocked from operating in the USA by a telecoms policy advisory body to President Trump.

The move comes amid growing tensions between the USA and China, after President Trump imposed tariffs on $34 billion worth of goods from China, as of 6 July.

In a move that could further inflame trade tensions between the US and China, President Donald Trump's administration has recommended blocking China Mobile from offering telecommunications services from within the U.S.

The NTIA decision comes amid escalated tensions between Washington and Beijing.

The National Telecommunications and Information Administration or NTIA said through a prepared statement on its website that the FCC or Federal Communications Commission should deny the 2011 application by the Chinese firm that is state-owned to offer its telecommunications services between the US and other nations.




The company had 901.9 million mobile subscribers, 671.8 million of which are on its 4G network, as of May 31. At the time as per global licensing procedures, the FCC requested comments from the Executive Branch on whether or not the license would be in the public interest.

The department said the company poses a national security risk, because it's vulnerable to exploitation by the country's ruling communist party.

According to the document, China Mobile had applied to be a carrier of worldwide calls between USA and foreign countries.

"This assessment rests in large part on China's record of intelligence activities and economic espionage targeting the U.S., along with China Mobile's size and technical and financial resources", the NTIA said.

That represented the first time a Chinese telecommunications network operator had been singled out as a security threat in the US. The NTIA disagreed, saying it considered it likely that China Mobile would comply with requests from the Chinese government.

The Chinese spokesperson said that Beijing was well prepared to take the necessary measures if the tariffs came into force. ZTE, the Chinese telecom equipment maker that was blocked off from United States suppliers in April for violating a sanctions settlement, has seen its stock fallen by about half since the ban was announcement.


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