Growing tensions between the United States and China have been evidenced after President Trump’s administration moved to block the expansion of China Mobile.

China Mobile had applied back in 2011 permission to enter the US market, but this is being blocked over national security grounds.

The United States government under President Trump has adopted an increasingly protectionist stance, and has blocked other Chinese deals such as Broadcom’s hostile takeover attempt of US-based Qualcomm.

Chinese block

And now China Mobile has become the latest entity to be targetted by the US.

The National Telecommunications and Information Administration (NTIA) said in a statement, that 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.

“After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved,” explained David J. Redl, Assistant Secretary for Communications and Information, at the US Department of Commerce.

“Therefore, the Executive Branch of the US government, through the National Telecommunications and Information Administration pursuant to its statutory responsibility to coordinate the presentation of views of the Executive Branch to the FCC, recommends that the FCC deny China Mobile’s Section 214 license request.”

It is worth noting that China Mobile is technically the largest telecom carrier in the world with 899 million subscribers.

And according to Reuters, China Mobile has not yet responded to the US move, but Chinese foreign ministry spokesman Lu Kang, in response to a question about China Mobile at a daily briefing, is quoted as saying: “We urge the relevant side in the United States to abandon Cold War thinking and zero sum games.”

China always encourages its companies to operate in accordance with market rules and to respect the laws of the countries it operates in, he said, adding the United States should stop putting “unreasonable pressure” on Chinese firms.

Trade war

The move comes amid growing tensions between the US and China, after President Trump imposed tariffs on $34 billion worth of goods from China, as of 6 July.

Beijing is expected to respond with tariffs of its own.

But to some Trump’s strategy seems to be winning. He brought another Chinese firm, ZTE to its knees after it ignored US rules about trading with Iran and North Korea.

That forced ZTE in May to declare that “major operating activities of the company have ceased,” as a consequence of the seven year ban on US companies supplying with software and components.

ZTE is currently in the process of getting the ban lifted, but is facing stiff opposition from some lawmakers in Washington.

Do you know all about security? Try our quiz!

Tom Jowitt

Tom Jowitt is a leading British tech freelancer and long standing contributor to Silicon UK. He is also a bit of a Lord of the Rings nut...

Recent Posts

Marriott Agrees To Pay $52 Million To Settle Data Breaches

To settle US federal and state claims over multiple data breaches, Marriott International agrees $52…

2 days ago

Tesla Shares Drop After Cybercab Unveiling

Mixed reactions as Elon Musk hypes $30,000 'self driving' robotaxi called Cybercab, as well as…

2 days ago

AMD Launches New AI, Server Chips To Expand Nvidia Challenge

AMD unveils new AI and data centre chips as it seeks to improve challenge to…

3 days ago

Chinese Hackers Breach US Wiretap Systems – Report

AT&T and Verizon among US broadband providers reportedly hacked to target American government wiretapping platform

3 days ago