US Gov cancels China Telecom’s license over national security concerns

US Gov cancels China Telecom’s license over national security concerns

The Federal Communications Commission (FCC) of the United States has reportedly decided to ban China Telecom's license in the nation citing national security concerns, marking Washington's newest pushback over what it sees as Chinese corporations infiltrating crucial networks.

According to reports, the Federal Communications Commission’s decision means that China Telecom Americas would stop operating in the United States in under 60 days. For nearly 20 years, China Telecom, the biggest Chinese telecommunications firm, has possessed the authority to offer telecommunications solutions in the United States.

According to FCC, China Telecom is prone to influence, exploitation, as well as control by Chinese authorities, and is very likely to be forced into compliance to fulfil the Chinese government’s demands in the absence of adequate legal procedures that are subject to independent judicial scrutiny.

The US regulator further added that the Chinese government's ownership of the corporation poses severe national security and law enforcement threat as it creates opportunities for the firm as well as the Government of China to access, record, disrupt, and/or misroute US communications.

A China Telecom America spokesperson responded by calling the FCC's decision ‘disappointing’, adding that the company would continue to pursue all potential legal alternatives while continuing to serve its consumers.

Stocks of US-listed Chinese IT businesses fell dramatically, while their Hong Kong-listed counterparts also saw heavy selling, pushing the Hang Seng index lower by more than 1%.

Alibaba, Tencent, XD, and were among the companies that fell more than 3% on the Hang Seng tech index.

Former US President Donald Trump had pushed the matter to the forefront of the diplomatic and political agenda in 2019 when he announced a national emergency to prohibit use of technologies from foreign adversaries and imposed stringent export controls on Huawei, a Chinese telecommunications corporation. China Mobile, another state-owned Chinese telecommunications operator, was barred from offering services across the Country by the FCC in May 2019.

The FCC commenced attempts in March to withdraw China Unicom Americas, Pacific Networks, and its wholly owned subsidiary ComNet's authorization to provide communications services across the Country.

Huawei, Hangzhou Hikvision Digital Technology, ZTE, Zhejiang Dahua Technology, and Hytera Communications are among the five Chinese corporations listed as constituting a national security threat under a 2019 law.

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.