FCC set to block China Mobile bid to provide US services, marking another hot spot in trade war
- China Mobile is seeking approval to provide services for phone calls between the US and other countries, is not seeking approval to provide wireless services
Federal Communications Commission chairman Ajit Pai said on Wednesday he opposes China Mobile’s bid to provide US telecommunications services, citing security risks, and said the commission will vote on whether to deny the company’s application in May.
China Mobile is seeking approval to provide services for phone calls between the United States and other countries. It is not seeking approval to provide wireless services to US consumers.
According to the FCC, China Mobile USA, which filed the application, is indirectly and ultimately owned and controlled by the Chinese government.
The five-member FCC is expected to back Pai’s draft order, officials said on Wednesday.
“It is clear that China Mobile’s application to provide telecommunications services in our country raises substantial and serious national security and law enforcement risks,” Pai said in a statement.
FCC officials said if successful China Mobile would be able to exploit the US “telephone network to increase intelligence collection against US government agencies and other sensitive targets that depend on this network.”