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Washington bans China Telecom from the US market

2021-10-27T16:02:17.357Z


The state-owned company China Telecom has to withdraw from the USA. The competent authority speaks of a "considerable risk" for national security. The group is "disappointed".


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China Telecom Shanghai Office (2020): Big US Concerns

Photo: ALEX PLAVEVSKI / EPA-EFE / Shutterstock

Washington has banned the Chinese telecommunications provider China Telecom from the US market because of "significant" national security concerns. The network agency Federal Communications Commission (FCC) instructed the group to cease its services within 60 days. The possession and control of the company by the Chinese government "posed a significant risk to national security and law enforcement," the FCC justified the decision.

This gives Beijing the opportunity to “access US communications” and, among other things, “disrupt” it or use it for espionage.

The move to ban the company, which has been on the US market for almost 20 years, is likely to put a further strain on the already strained relations between China and the USA.

The company described the decision as "disappointing".

The US Department of Justice had already threatened in April of last year to end China Telecom's business in the US.

The previous FCC approval for China Telecom was contrary to the public interest, the Justice Ministry said at the time.

In the USA, distrust of China and Chinese technology groups has grown in recent years.

This particularly affects the telecommunications group Huawei, which is a leader in 5G network expansion.

Washington fears cyber attacks and industrial espionage.

mic / AFP

Source: spiegel

All business articles on 2021-10-27

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