China Telecom America, a leading Chinese telecommunications provider that offers its services to more than 100 countries, has recently been revoked to operate within the US, as per a mandate given by the Federal Communications Commission (FCC).
According to the order, the Chinese telecom provider must cease their services within sixty days in the US. The FCC said that the decision was finalised from the reviews submitted by the Executive Branch agencies responsible for reviewing the nation’s security.
The review of FCC has found out the significant national security risks being imposed by the China Telecom Americas against the US because it is owned and controlled by the Chinese government. Furthermore, the telecom firm’s liability for complying with China’s intelligence and cybersecurity laws are conflicted with the interests of the US.
Six US Executive Branch agencies had recommended banning the China Telecom Americas’ operations last April 2020 due to cybersecurity risks.
These agencies that recommended the mandate include the US Trade Representative, Departments of Justice, Defense, State, Commerce, and Homeland Security. According to the interagency committee, the Chinese telecom firm can provide a gateway for state-backed cybercriminals to spy against the US and steal trade secrets or other sensitive nation information. Moreover, it can disrupt and misroute the traffic of the US communications through BGP hijacking.
In April 2020, two US senators also advised the FCC to review the approvals allowing Chinese telecoms to operate in America prior to the recommendation.
Other Chinese telecommunication firms have also been investigated due to Chinese-backed security threats against the US, including Huawei and its two US subsidiaries. In February 2020, the telecom firm was charged with stealing trade secrets and violating the Racketeer Influenced and Corrupt Organizations Act (RICO) by the US Department of Justice.
The US DOJ said that the Chinese telecom firms acquired a non-public intellectual property that significantly declined their research and development costs. Due to this, they have also gained an unfair competitive advantage compared to local telecom equipment manufacturers in the US.
In May 2019, another Chinese telecom firm China Mobile was also banned by the FCC due to being exploited in activities that jeopardised US national security.
