The U.S. government has moved to block China Mobile (0941.HK) from offering services to the country’s telecommunications market, recommending its application be rejected because the firm posed national security risks.
The move by President Donald Trump’s administration comes amid growing trade frictions between Washington and Beijing. The United States is set to impose tariffs on $34 billion worth of goods from China on July 6, which Beijing is expected to respond to with tariffs of its own.
The Federal Communications Commission (FCC) should deny the state-owned Chinese firm’s 2011 application to offer telecommunication services between the United States and other countries, the National Telecommunications and Information Administration (NTIA) said in a statement posted on its website.
“After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved,” said the statement, quoting David Redl, assistant secretary for communications and information at the U.S. Department of Commerce, which NTIA is part of.
China Mobile, the world’s largest telecom carrier with 899 million subscribers, did not immediately respond to Reuters’ request for comment on Tuesday.