Washington moves to block China Mobile from US market

July 3, 2018
Washington said China Mobile's entry into the US market posed potential law enforcement and national security risks
Washington said China Mobile's entry into the US market posed potential law enforcement and national security risks

The US Commerce Department recommended against approval of China Mobile's seven year old application to enter the domestic market on Monday, citing national security concerns.

The move marked the latest blast from the US under President Donald Trump in its growing trade dispute with China.

US tariffs against billions of dollars worth of Chinese goods are set to kick in on Friday and China has vowed to retaliate.

"After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved," Commerce Department assistant secretary David Redl said in a Monday statement.

He added the department's National Telecommunications and Information Administration recommended the Federal Communications Commission turn down China Mobile's application to offer voice traffic between the US and other countries.

The Trump administration has also moved to punish Chinese telecoms firm ZTE, banning US companies from selling crucial hardware and software components to the company for seven years.

US officials imposed the ban because of what they said were false statements by the firm regarding the illegal sale of goods to Iran and North Korea.

ZTE pleaded guilty to those charges in March last year and was hit with $1.2 billion in fines.

Last month the Trump administration gave ZTE a lifeline by easing sanctions against the firm in exchange for a further $1.4 billion in penalties, although the US Senate has defied Trump by voting to reimpose the ban.

Explore further: US Senate votes to reimpose ban on China's ZTE, shares plunge

Related Stories

ZTE petitions US government to lift sanctions

May 7, 2018

Chinese telecom giant ZTE has asked the US government to lift a ban on sales to the company, which threatens its survival and has added to trade tensions between Washington and Beijing.

Recommended for you

Team breaks world record for fast, accurate AI training

November 7, 2018

Researchers at Hong Kong Baptist University (HKBU) have partnered with a team from Tencent Machine Learning to create a new technique for training artificial intelligence (AI) machines faster than ever before while maintaining ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.