Washington's push to erect new barriers to the entry of Chinese companies into the United States market continued on Wednesday, as the country's top telecommunications regulator announced a move to block China Mobile.
China Mobile USA is a DE corporation that is indirectly and ultimately owned and controlled by the Chinese government. It did not seek to provide wireless internet services to U.S. customers. In July of past year, the National Telecommunications and Information Administration along with other executive branch agencies suggested the FCC reject the application suggested the FCC reject the application, saying that China Mobile "would pose unacceptable national security and law enforcement risks".
"Safeguarding our communications networks is critical to our national security", Pai said in a statement. China Mobile, which filed the application in 2011, was not seeking to provide domestic cell service but global connections between the U.S. and locations overseas. However, regulators have long doubted the telcom's intents as being in the public interest.
FCC Chairman Ajit Pai plans to circulate a proposal to that effect to the rest of the commission in the coming weeks, and then the full commission will vote on the proposal during its open meeting next month.
The largest telecommunications provider and carrier in the world, China Mobile submitted its application to the FCC in September 2011.
The executive branch agencies also believe that a voluntary mitigation agreement won't resolve national security concerns.
China Mobile first applied back in September 2011 for a license to provide facilities based and resale telecommunications services between the USA and overseas destinations.
The draft Order circulated by Chairman Pai to his colleagues would find that, based on the public record, China Mobile had not demonstrated that its application for worldwide Section 214 authority is in the public interest.
China Mobile did not immediately return a request for comment. The move to ban China Mobile in the USA comes amid espionage concerns from Chinese tech companies.