US FCC Revokes China Telecom's US License Over "National Security Concerns"

Signs of Worsening US-China Conflict Phase

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] U.S. authorities have imposed a complete ban on China Telecom's business and operations within the United States. This move is seen as a sign that the conflict phase between the U.S. and China, driven by issues such as COVID-19, human rights, cybersecurity, and trade, is worsening.

On the 26th (local time), the U.S. Federal Communications Commission (FCC) announced the cancellation of China Telecom's business license in the U.S. China Telecom is China's largest fixed-line telecommunications operator and the third-largest mobile carrier.

The FCC explained the background of this decision by stating that "China Telecom poses a significant security risk" and that "(China Telecom) is a Chinese state-owned enterprise, making it subject to control by the Chinese government."

The FCC added, "If this company operates in the U.S., it could pose a real threat to the American telecommunications network."

According to the FCC's measure on this day, China Telecom must cease all its operations within the U.S. within 60 days.

Since China Telecom's business scale in the U.S. is not large, it is expected that the damage to the company from this measure will be minimal. However, there are voices emphasizing the symbolic significance of this license cancellation.

Martjin Rasser, a researcher at the Washington D.C.-based think tank 'New American Security Center,' said, "(The FCC's decision) is a significant measure," adding, "It strongly sends the message that the U.S. is concerned about risks posed by Chinese technology companies under Chinese government control."

Earlier this year, following President Joe Biden's inauguration, a dialogue phase between the U.S. and China had been established, making the symbolic nature of this measure even more pronounced.

The day before, Chinese Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen held a phone call and discussed plans for bilateral cooperation in the macroeconomic field.

Last month, President Biden spoke with Chinese President Xi Jinping and reached a consensus on the need to prevent conflicts between the two countries from escalating into clashes. They also agreed to hold a virtual summit within this year.

However, recently, centered on the Taiwan issue and human rights concerns within China, the Biden administration has continued to keep a check on China.

The FCC's decision to cancel China Telecom's business license is also analyzed as an extension of this intent.

Derek Scissors, Senior Fellow at the American Enterprise Institute, said, "The FCC's measure is long overdue," emphasizing, "China's major telecommunications companies are not private enterprises but effectively government agencies."

China expert Roslyn Layton stated in an interview with Bloomberg News on this day, "The FCC's measure indicates that further responses may be forthcoming."

According to Bloomberg News, the FCC is also planning to cancel the business license of another Chinese telecommunications company, China Unicom.

Earlier in June, the FCC had also filed a request to ban the sale of products from major Chinese CCTV manufacturers.

Additionally, on the 19th, FCC Commissioner Brendan Carr stated that a sales ban should be imposed on DJI, the world's largest drone manufacturer based in China, citing security concerns.

[Image source=Reuters Yonhap News]

This content was produced with the assistance of AI translation services.