Trump Tells FCC to Deny China Mobile US License

Trump Tells FCC to Deny China Mobile US License

In a move that could further inflame trade tensions between the USA and China, President Donald Trump's administration has recommended blocking China Mobile from offering telecommunications services from within the U.S. Customers could include fixed and mobile network operators, calling-card companies, and business customers.

"After significant engagement with China Mobile, concerns about increased risks to USA law enforcement and national security interests were unable to be resolved", said a statement by the National Telecommunications and Information Administration (NTIA). The NTIA disagreed, saying it considered it likely that China Mobile would comply with requests from the Chinese government.

Officials had "significant engagement" with China Mobile but weren't able to resolve concerns, David Redl, assistant secretary for communications and information at NTIA, said in a news release.

It submitted an application for a license to U.S. regulators back in 2011.

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

As a recall, the matter in hand is the latest extension of the ongoing trade conflicts between China and the United States.

Earlier this year the US Commerce Department found that Chinese state-owned tech giant ZTE had violated trade bans with North Korea and Iran. "Like every #China telecommunication company, they pose a grave security risk", Rubio tweeted. In January, the Trump administration also blocked a $1.2 billion offer from the Chinese FinTech unicorn, Ant Financial Services Group, to acquire MoneyGram International Inc., a Dallas-based money transfer firm. One concern it cited was the deal could cause the United States to fall behind on the development of 5G technology and allow China to take the lead.

The Commerce Department has also levied sanctions against embattled Chinese phone maker ZTE out of national security concerns.

America's ban on ZTE is affecting its business as far away as Europe, if Bloomberg's sources are right.

The US government has been growing increasingly critical (perhaps even paranoid) when it comes to the operation of Chinese companies in the US.

It had planned something similar for the U.S. but this week (though not a direct to consumer offering apparently, but aimed at the enterprise sector) but its application was blocked following a recommendation from the National Telecommunications and Information Administration.

The Chinese companies strongly disputed the report's findings.

No such luck for those in America, where the company first applied for a Federal Communications Commission licence in 2011.

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