Market Desk online: US regulators are expelling a unit of China Telecom Ltd, one of the country’s three major state-owned carriers from the American market as a national security threat amid rising tension with Beijing.
China Telecom (Americas) Corp is required to stop providing domestic interstate and international service in the US within 60 days, under an order approved Tuesday by the Federal Communications Commission. The FCC cited the danger that Beijing might use the company to disrupt communications and “engage in espionage and other harmful activities against the US and has revoked the license of China Telecom, one of China’s largest telecom companies. The decision was taken out of concern for “US national security” Washington said.
China Telecom, which has been providing telecom services in the US for nearly 20 years, described Washington’s decision as “disappointing”.
In a statement, the company said, “We plan to pursue all possible alternatives to continue customer service.”
US officials say the Chinese government’s control of the company has allowed Beijing to gain access to US communications, store information, disrupt communications and mislead.
They can use this opportunity to “spy or engage in any kind of malicious activity against the US.”
In April 2020, the US Federal Communications Commission (FCC) warned that China Telecom Americas could be shut down because of “exploitation, influence and control by the Chinese government.”