HNG KONG: Washington bars a Chinese telecommunications firm from operating in the United States due to security concerns — an action that threatens to once again increase tensions between the world’s two largest economies.
On Tuesday, the US Federal Communications Commission ordered China Telecom to discontinue its services in the US within 60 days, citing reports that the company’s American subsidiary “is subject to exploitation, influence, and control by the Chinese government.”
The company is also “highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight.”
This action by the FCC culminates a long dispute with China Telecom, which has been operating in the United States for nearly two decades. The agency said it gave the company an opportunity last December to rebut concerns over its presence in the United States, but that China Telecom has failed to do so.
This clash has happened time and again between the US and China Telecom and the recent spark threatens to increase tensions between the world’s two largest economies.
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