Beijing Agency. A US regulator has expelled a unit of China Telecom Ltd from the US market amid rising tensions with China.
China Telecom Limited is one of the three largest public sector telecommunications companies in China. An order by the Federal Communications Commission (FCC) said on Tuesday that China Telecom (USA) Corporation must stop domestic and international services in the US within 60 days.
The commission said Beijing could use the company to conceal or intercept US communications. Apart from this, it was also feared to be involved in espionage and other harmful activities against America. Let us tell you that former President Donald Trump had greatly limited the access of Chinese companies in the US markets.
President Joe Biden is taking similar tough measures against companies linked to Beijing, citing the country’s security as a risk. China Telecom is among companies that were not only expelled from US stock exchanges under Trump’s order, but Americans were barred from investing in them.
The FCC has said the company’s conduct to US agencies demonstrates a lack of credibility. On the steps taken by the US, the Chinese government said that it would take every step in the interest of its companies, which would be necessary for them. However, so far China has not taken any retaliatory action.
The Pentagon has blacklisted Chinese telecommunications companies. Apart from this, Chinese state oil companies, processor and chip suppliers, shipbuilding and nuclear power equipment companies have also been placed in this list.
