Trump moves to block China Mobile’s U.S. entry on security concerns

SHANGHAI- According to the local routers, ‘The U.S. government has moved forward with a plan to block China Mobile, from offering their services to the country’s telecommunications market.

The Federal Communications Commission (FCC) should ‘deny the state-owned Chinese firm’s 2011 application to offer telecommunication services between the United States and other countries, the National Telecommunications and Information Administration (NTIA) said in a statement posted on its website’.

China’s No. 2 telecommunications equipment maker was forced to cease major operations in April after the United States slapped it with a supplier ban saying it broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.

David Redl, assistant secretary for communications and information at the U.S. Department of Commerce, said: “After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved”. Although, Chinese foreign ministry spokesman Lu Kang, replied about China Mobile at a daily briefing, saying “We urge the relevant side in the United States to abandon Cold War thinking and zero-sum games”.

The NTIA said its assessment rested “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”.

In February, U.S. senators and spy chiefs warned that China was trying to gain access to sensitive U.S. technologies and intellectual properties. However, such concerns are not deterring China’s Xiaomi Corp which is set to press ahead with plans to enter the United States next year.

China Mobile shares closed down 2 percent on Tuesday, their lowest close in more than four years, after news of the NTIA recommendation to block the firm’s U.S. entry.

It said, “the company was “subject to exploitation, influence and control by the Chinese government” and that its application posed “substantial and unacceptable national security and law enforcement risks in the current national security environment”.

by Sawan Kumar on July 4, 2018

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