The United States threatened Thursday to cut off Beijing-controlled China Telecom from serving the US market because of legal and security risks, the Justice Department announced Thursday.
A recommendation by the government’s top departments, including Defense, State and Homeland Security, said that the Federal Communications Commission should “revoke and terminate” all authorizations for the Chinese giant’s US subsidiary, China Telecom , to provide international telecommunications services to and from the United States.
The agencies making the recommendation — which also included the Justice Department, the Commerce Department, and the US Trade Representative — said China Telecom is vulnerable to “exploitation, influence and control” by the Chinese government. It came just five days after President Donald Trump’s administration formed an interdepartmental body to formally review national security concerns related to foreign telecommunications companies involved in the United States.
It said the company has inaccurately reported to US authorities where it stores its US records and how it manages cybersecurity. Washington has banned Huawei, the world’s largest provider of telecoms equipment and a leader in the new 5G technology, from supplying US government systems and has strongly discouraged use of its equipment by the US private sector.
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