Trump administration moves to block China Mobile from US market
The administration of US President Donald Trump has moved to block a state-owned Chinese wireless carrier from providing telecom services in the US, citing national security concerns.
The US Commerce Department on Monday did not approve China Mobile's request to enter the US market. The application was submitted back in 2011.
The US action against an important Chinese company could accelerate the dispute between Washington and Beijing over trade and technology.
"Because China Mobile is subject to exploitation, influence, and control by the Chinese government, the Executive Branch believes that granting China Mobile's application ... would produce substantial and unacceptable national security and law enforcement risks," the telecommunications agency said in a filing to the FCC.
"After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved," Commerce Department assistant secretary David Redl said in a statement on Monday.
The US government has also taken measures to punish Chinese telecoms firm ZTE, barring American companies from selling crucial hardware and software components to the company for seven years, despite reaching a $1.2 billion settlement with the telecom giant in 2017 over trade with Iran.
The US had ZTE pay $1.2 billion in fines in March 2017 for allegedly shipping telecommunications equipment to Iran and North Korea in violation of unilateral American sanctions.
US authorities have accused the company of breaching the terms of the settlement. ZTE, they say, has refused to discipline the employees responsible as per the agreement.
Last month, the Trump administration eased sanctions against ZTE in exchange for a further $1.4 billion in penalties.
American companies are estimated to provide 25 percent to 30 percent of the components used in ZTE’s equipment, which includes networking gear and smartphones. ZTE also sells handset devices to US mobile carriers.
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