The Trump administration has recommended that US regulators block China Telecom from operating in the US and warned that the China-backed company was creating “substantial and unacceptable” national security and law enforcement risks for the US.
The move is the latest example of how the White House is seeking to rid the US telecommunications industry of any reliance on China. It comes after the Trump administration banned network manufacturer ZTE from buying US products in 2018 – a move that was later reversed – and its placement of severe restrictions on Huawei, which has separately been accused in an indictment of stealing trade secrets.
The Department of Justice said that its executive branch recommendation to the Federal Communications Commission – which authorises US telecommunications licences – was based on new information about China’s alleged role in “malicious cyber activity” targeting the US, and fears that China Telecom was vulnerable to exploitation, influence and control by the Chinese government.
The Chinese embassy in Washington did not immediately return a request for comment.
The justice department also alleged that China Telecom had made inaccurate statements to the US regarding its cybersecurity practices and the “nature” of its US operations, which the department said was giving Chinese state actors opportunities to engage in malicious cyber-activity enabling economic espionage and the “misrouting” of US communications.
“Today, more than ever, the life of the nation and its people runs on our telecommunications networks,” said John Demers, assistant attorney general for national security. “The security of our government and professional communications, as well as of our most private data, depends on our use of trusted partners from nations that share our values and our aspirations for humanity.”
In a statement, China Telecom denied the allegations. It said: “The company has always been extremely cooperative and transparent with regulators. In many instances, we have gone beyond what has been requested to demonstrate how our business operates and serves our customers following the highest international standards.”
The move by the Trump administration comes months after a bipartisan letter from two senators – Democrat Chuck Schumer of New York and Republican Tom Cotton of Arkansas – called on the FCC to rethink previous authorisations to China Telecom, citing the Chinese government’s role in promoting economic espionage.