China Mobile US Move Blocked By Trump Administration


This is just the start, though, as according to a recent report by Bloomberg, the FCC is set to deny China Mobile's application to provide telecommunications services in the US.

The advisory body, the National Telecommunications and Information Administration, is part of the Department of Commerce. India has 1.2 billion wireless users, but there is little evidence China Mobile has any presence there.

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

China Mobile is the world's largest telecom carrier with 899m subscribers and while being blocked in the USA may be inconvenient for the company, it would likely not hurt its bottom line as a majority of its business is conducted in its home country.

The Trump Administration's recommendation should come as no surprise considering the tariffs and trade war that is brewing between the United States and China.

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The news comes in the middle of growing tensions between the United States and China, following a supplier ban placed on its global telecoms vendor ZTE in April.

The Federal Communications Commission should deny China Mobile's application, submitted in 2011, the National Telecommunications and Information Administration said in a filing distributed by email on Monday.

The FCC didn't immediately respond to a request for comment.

"To the contrary, the authorization would pose substantial, unacceptable national security and law enforcement risks".

The company had 901.9 million mobile subscribers, 671.8 million of which are on its 4G network, as of May 31.

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That represented the first time a Chinese telecommunications network operator had been singled out as a security threat in the US.

Earlier this year the US Commerce Department found that Chinese state-owned tech giant ZTE had violated trade bans with North Korea and Iran.

If China Mobile's application went through, it would enable the Chinese government to use it to spy on U.S. government agencies and other targets on domestic phone networks, the agency alleged.

In its recommendation, the NTIA said its assessment "rested in large parts on China's record of intelligence activities and economic espionage targeting the United States", along with China Mobile's size and technical and financial resources.

China Mobile, which has nearly a billion customers in its home country, applied for the license in 2011 at the FCC.

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Those companies are not Chinese state-owned, but are alleged to have close ties with the Chinese government.