By David Shepardson

WASHINGTON (Reuters), -U.S. Federal Communications Commission (FCC), Tuesday voted against China Telecom (NYSE 🙂 U.S. subsidiary’s authorization to operate within the United States. The vote was based on national security considerations.

China Telecom Americas has been ordered to cease U.S. service within the next 60 days. China Telecom, China’s largest telecommunications firm, was granted authorization for the United States to supply telecommunications service almost twenty years ago.

FCC determined that China Telecom was “subject to exploitation and influence by the Chinese government” and it is likely they will force China Telecom to comply with Chinese requests for information without adequate legal procedures under independent judicial supervision.

U.S. regulators stated that Chinese government control and ownership “raise substantial national security and law enforcement risk by providing opportunities for the company” and “to access to, store, disrupt and/or misroute U.S. communications.” Communications

“The FCC’s decision is disappointing. “We plan to explore all options while continuing our service to customers,” a spokesperson for China Telecoms America told Reuters.

China Telecom had more than 335,000,000 subscribers around the globe as of 2019. According to a Senate Report, it claims to be the biggest fixed-line and broadband operator worldwide. It also offers services to the United States government facilities.

In April 2020, the U.S. government stated that China Telecom wants to expand its virtual mobile network to over 4 million Chinese Americans. It also targets 2 million Chinese tourists per year who visit the United States. 300,000. Chinese students attend American colleges. There are more than 1500 Chinese-owned businesses.

The FCC issued a warning in April 2020 that it would shut down U.S. operations for three Chinese telecommunications firms controlled by the state. This was in response to national security threats, such as China Telecom Americas and China Unicom (NYSE) Americas), Pacific Networks Corp, as well as China Unicom Americas (NYSE:) Americas) LLC, as well as China Unicom Americas (NYSE:) Americas), China Unicom (NYSE) Americas), China Unicom (NYSE) Americas Corp (USA) LLC) (USA) LLC, after U.

Brendan Carr (FCC Commissioner), a Republican said that the FCC must “be vigilant to the dangers posed by China.” An inquiry to the Chinese Embassy in Washington was unsuccessful.

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FCC attempted to cancel authorizations for China Unicom Americas and Pacific Networks to provide U.S. Telecommunications Services.

FCC voted unanimously in May 2019 not to grant China Mobile (NYSE:), another Chinese state-owned telecommunications company the right of providing U.S. services.

Other actions have been taken by the FCC against Chinese telecoms companies and others.

Huawei Technologies Co. and ZTE Corp. (HK) were designated by the FCC last year as national security threats. The declaration prevented U.S. businesses from using an $8.3billion government fund for equipment purchases from the companies. Deciding to require ZTE/Huawei equipment carriers to “rip and substitute”, the FCC adopted regulations in December.

The FCC identified five Chinese companies in March as having a risk to national security. These were ZTE (Hytera Communications), ZTE (ZTE), Hytera communications, Hangzhou Hikvision Digital Technology Co, and Zhejiang Dahua Technology Co.