Trump administration says China Mobile should not access US market

Trump administration says China Mobile should not access US market

Trump administration says China Mobile should not access US market

David Redl, assistant secretary for communications and information at the US Department of Commerce (DOC) penned a recommendation to the Federal Communications Commission (FCC) through the National Telecommunications and Information Administration (NTIA) on behalf of the Executive Branch, recommending that China Mobile's application be denied.

"This doesn't move the needle", he said, adding the timing of the decision was to be viewed in the context of the US-China trade frictions.

"After significant engagement with China Mobile, concerns about increased risks to USA law enforcement and national security interests were unable to be resolved".

Giving China Mobile access to the United States telecommunications market could lead to a spike in Chinese spying, it said.

The Shenzhen-based company's presence in the U.S. "has been artificially restricted by unfounded allegations and suspicions based exclusively on misperceptions" about its relationship with China's government, Huawei said in a filing with the Federal Communications Commission that was made public on Tuesday.

The Chinese operator requested the licence back in 2011, and the FCC asked the NTIA, which coordinates telecom policy for the United States government, to assess whether the licence was in the U.S. public interest. "The 4G network will co-exist with the 5G one for a long time and the 5G network development should take a full advantage of the company's fixed-line resources and infrastructure like optical cables to build a network integrating the fixed and mobile networks", said Cao Lei, an official from the China Telecom.

Huawei, in its comments that became available Tuesday, said it's an independent, privately-owned business.


A USA rejection is expected to have little impact on the company's income.

Also, Ramakrishna Maruveda, an analyst for Daiwa Securities pointed out that the firm draws most of its income out of the domestic market, which is why the impact will not be overwhelming.

In return, the U.S. said it would remove the ban - a negotiation that has been linked to wider trade tensions between the USA and China. Beijing denies the allegations.

The Federal Communications Commission is considering a move to bar subsides under the $8.5 billion Universal Service Funds from going to companies the telecom agency deems a security risk. When the Donald Trump administration blocked the Qualcomm-Broadcom deal, they cited the backdoor support of China behind Broadcom.

A ban was placed on the firm that prevented it from buying parts from USA suppliers - a move that forced Shenzhen-based ZTE to suspend major operations, and threatened to destroy its business.

United States officials imposed the ban because of what they said were false statements by the firm regarding the illegal sale of goods to Iran and North Korea. That ban basically has shut down ZTE. That's easier if communications pass through Chinese-owned networks.

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