The US Federal Communications Commission (FCC) has revoked China Telecom's US subsidiary's authorization to operate, citing national security concerns. The FCC has determined that China Telecom is "subject to abuse, influence and control by the Chinese government and is likely to be compelled to comply with Chinese government requests without adequate legal procedures subject to independent judicial review." The FCC added that "Chinese government ownership and control of China Telecom Americas provides the company and the Chinese government opportunities to access, store, intercept and/or misdirect U.S. communications, increasing significant national security and law enforcement risks”.
China Telecom, the largest telecommunications company in China, has been authorized to provide telecommunications services in the United States for nearly 20 years. China Telecom Americas has to terminate services within 60 days. In May 2019, the FCC revoked another state-owned Chinese telecommunications company, China Mobile, its right to provide US services, citing risks that the Chinese government could use approval to spy on the US government. In March, the FCC began efforts to revoke the authorization of China Unicom Americas, Pacific Networks and its wholly-owned subsidiary ComNet to provide US telecommunications services.
It is a development that will not help resolve the Chinese-US conflict and will add a new dimension. Issues such as trade, technology transfer, intellectual property, cyber security, national security are far from being resolved.
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