The government called Chinese Thursday Washington to abandon efforts to ban state-owned Chinese telecom companies from the United States in a new confrontation over technology and security.
On Wednesday, the Federal Communications Commission voted to begin revoking US licenses to those companies, describing them as posing security risks because the Communist Beijing government controls them.
And theShe said Committee: The three telecom companies – China Unicom, Pacific Networks and ComNet – have failed to demonstrate that their US operations are not subject to undue influence from Beijing.
This strips companies of their right to operate within the United StatesThe committee said: The threat to our networks of entities allied with Communist China is one that we must address directly.
“When it comes to communist China, we have set a high standard for business over the past few years,” she added.
The Chinese Foreign Ministry accused Washington of misusing security complaints to harm Chinese trade competitors.
A Chinese Foreign Ministry spokesman said: The United States should stop the wrong practice of popularizing the concept of national security and politicizing economic issues and stop abusing state power to unreasonably suppress Chinese companies.
The move predicts more bad news for the operations of troubled companies in the United States, after a decision taken by the New York Stock Exchange in January to prevent them from trading.
In a statement following Wednesday’s ruling, China Unicom – one of the world’s largest telecom companies – insisted that it had never acted illegally and expected a comprehensive, fair and fact-based review of the company’s behavior from the committee.
The decision comes amid a broader campaign by US regulators to crack down on Chinese telecom groups they see as a threat to national security.
A Chinese Foreign Ministry spokesman said: Beijing is taking necessary measures to protect the legitimate rights and interests of Chinese companies.
Chinese officials have issued similar warnings in the past, but those warnings have usually not resulted in any action.
The three companies sell international voice and data services. “The companies have been asked to explain their ownership and operations, and have failed to address serious national security threats that pose their continuing operations in the United States,” the committee said.
Earlier, the state-owned China Mobile was banned in 2019 from entering the US market for security reasons.
Trump has also blocked access to most of the US technology for telecom equipment giant Huawei and some other Chinese technology companies.
Trump issued an order barring Americans from investing in the securities of companies the Pentagon considers linked to the Chinese military.
And last week, regulators included tech giant Huawei in a list of telecoms companies believed to pose an unacceptable risk, indicating that hopes for change with the United States under Biden’s leadership are unfounded.