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The US Federal Communications Commission (FCC) has suspended business licenses for US subsidiaries of China Telecom, a large state-owned telecom operator in China, for 60 days on the grounds that it threatens national security.
According to Hong Kong’s South China Morning Post (SCMP) on the 27th, the FCC held a meeting the day before (local time) and decided to delay the business license of China Telecom America, a subsidiary of China Telecom in the US, for 60 days.
Previously, the FCC started the process of suspending China Telecom’s business license in the United States in December last year during the time of former US President Donald Trump, and ordered China Telecom to ‘explain’ about national security threats.
The FCC explained the background to the decision to suspend China Telecom America’s business license, saying, “China Telecom America’s ownership and governance structure poses a significant threat to (US) national security and law enforcement.”
The FCC also said that China Telecom America’s ownership and governance structure risks providing parent companies and the Chinese government with opportunities to access, obtain, or disrupt U.S. communications, engage in espionage or other activities harmful to the United States. pointed out
Acting FCC Chairman Jessica Rosenworth, who was appointed by US President Joe Biden as FCC chairman, said during a congressional hearing on the 26th that China Telecom did not respond in good faith to its order to address national security threats.
“The FCC has a long history of opening the US market to foreign carriers,” said Acting Chairman Rosenwassell.
As a result, China Telecom America will not be able to operate internationally as well as in the United States.
China Telecom has been operating in the United States for about 20 years.
China Telecom’s main customers are about 4 million Chinese-Americans, more than 2 million Chinese tourists visiting the US annually, 300,000 US students, and 1,500 major Chinese companies in the US.
Separately, the FCC also ordered other Chinese telecom companies, China Unicom and Pacific Network, and its subsidiary Comnet, to address security threats.
China’s three major telecommunication companies, China Telecom, China Mobile, and China Unicom, were expelled from the US stock market for threatening US national security.
The three Chinese telecommunications companies were delisted from the New York Stock Exchange in November last year after former President Donald Trump issued an executive order banning American investment in companies linked to the Chinese military.
After the Joe Biden administration took office, the three Chinese telecommunications companies applied for a reconsideration with the US Securities and Exchange Commission (SEC), but the decision to delist during the Trump administration was not overturned, and the delisting of the New York Stock Exchange was confirmed in May.
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