Trump proposes to block the entry of China Mobile in the United States for reasons of national security



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(Reuters) – The US government decided on Monday to prevent China Mobile Ltd. providing services to the US telecommunications market, recommending that his application be rejected because the government-owned firm posed national security risks.

FILE PHOTO: A woman uses her mobile phone in front of a China Mobile office in downtown Shanghai on October 22, 2012. REUTERS / Aly Song / Photo File

The Federal Communications Commission (FCC) should refuse China Mobile's 2011 application To offer telecommunication services between the United States and other countries, the National Telecommunications and Information Administration (NTIA) said in a statement posted on his website. "After a major engagement with China Mobile, concerns over increased risks for law enforcement and national security interests have not been resolved," said David Redl, Assistant Secretary of Communications. and information from the US Department of Commerce, of which NTIA is a part.

PHOTO FILE: A sign of China Mobile is seen at the CES (Consumer Electronics Show) Asia 2016 in Shanghai, China, May 12, 2016. REUTERS / Aly Song / Photo File

China Mobile, the largest operator the world's telecommunications with 899 million subscribers, did not immediately respond to Reuters' request for comment.

Its shares fell 2.6% at the start of trading on Tuesday to their lowest in more than four years.

The Trump administration's decision on China Mobile comes against a backdrop of growing trade friction between Washington and Beijing. The United States is expected to charge $ 34 billion worth of goods to China on July 6, which Beijing would have to respond with its own tariffs.

ZTE Corp, China's No. 2 telecom equipment company, was forced to cease major operations in April after the US imposed a ban on punishing executives who plotted against US sanctions against China. Iran and the North. Korea. ZTE is in the process of getting the ban lifted and announced a new board of directors last week.

FILE PHOTO: A man walks past the China Mobile logo at the Mobile World Congress in Barcelona, ​​Spain, on February 28, 2018. REUTERS / Sergio Perez

China Mobile Communications Corp., a state-owned company, held nearly 73 percent of China Mobile, according to Thomson Reuters data in December.

In its recommendation, NTIA stated that its assessment was "largely based on China's intelligence and economic espionage activities targeting the United States, as well as on the size and technical resources and of China Mobile ". was "subject to exploitation, influence and control of the Chinese government" and that its application posed "significant and unacceptable risks to national security and law enforcement in the country". 39, the current national security environment ".

U.S. Senators and spies warned in February that China was trying, through means such as telecommunication companies, to gain access to sensitive American technologies and intellectual property.

Report by Brenda Goh and the Beijing Monitoring Bureau; Additional report by Sijia Jiang in Hong Kong; Editing by Richard Pullin and Muralikumar Anantharaman

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