US revokes license of China Telecom’s US subsidiary

United States government has revoked China Telecom’s license to operate in America, citing national security concerns.

The Federal Communications Commission said on Tuesday it decided to order the Chinese telecom giant’s US subsidiary to discontinue any domestic or international services within 60 days.

FCC says Beijing’s ownership and control of China Telecom’s subsidiary raise “significant national security and law enforcement risks”.

The communications regulator said that provides opportunities for “espionage and other harmful activities against the United States”.

It would be recalled that China Telecom was delisted from the New York Stock Exchange in January. The decision was based on then-US President Donald Trump’s executive order banning investment in businesses with close ties to China’s military.

The administration of President Joe Biden has further restricted Americans from investing in Chinese high-tech companies.

Washington is also stepping up efforts to keep China’s technology firms out of the US supply chain.

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