(Reuters) – The US government UU It advanced on Monday to prevent China Mobile Ltd from offering services to the US telecommunications market. UU And he recommended that his application be rejected because the state-owned company poses national security risks.
The Federal Communications Commission (FCC) must Denying China Mobile's 2011 request to offer telecommunications services between the United States and other countries, the National Telecommunications and Information Administration (NTIA) said in a statement posted on its website.
"After a significant commitment with China Mobile, concerns about the increased risks for the application of US law and national security interests could not be resolved," the statement said, citing David Redl, assistant secretary of communications and information of the Department of Commerce, of which the NTIA is a party.
China Mobile, the operator of The world's largest telecommunications with 899 million subscribers, did not immediately respond to the request for comments from Reuters.
Its shares fell 2.6 percent at the start of trading on Tuesday to its lowest level in more than four years.
The Trump administration movement in China Mobile comes amid growing trade frictions between Washington and Beijing. The United States is willing to impose tariffs on products worth 34 billion dollars from China on July 6, and Beijing is expected to respond with its own tariffs.
And ZTE Corp, China's No. 2 telecommunications equipment maker, was forced to suspend major operations in April after the United States prevented it with a supplier ban that said it broke an agreement to discipline executives conspired to evade US sanctions UU Korea. ZTE is in the process of lifting the ban and announced a new board last week.
China Mobile Communications Corp, a state-owned company , owned almost 73 percent of China Mobile, according to Thomson Reuters data from December.
In its recommendation, the NTIA said that its assessment rested "largely on the record of China's intelligence and economic espionage activities in the US, along with the size and technical and financial resources of China Mobile "
He said the company was "subject to exploitation, influence and control by the Chinese government" and that its application posed "substantial and unacceptable risks of national security and law enforcement in the current national security environment."
U.S. Senators and intelligence chiefs warned in February that China was trying, through media such as telecommunications companies, to gain access to sensitive technologies and intellectual properties in the United States.
Reports by Brenda Goh and Beijing Monitoring Desk; Additional reports from Sijia Jiang in Hong Kong; Edition by Richard Pullin and Muralikumar Anantharaman