ZCZC
BCN-09
US-CHINA-TELECOMMS-TRADE
Washington moves to block China Mobile from US market
WASHINGTON, July 3, 2018 (BSS/AFP) – 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.
BSS/AFP/MR/ 1223 hrs