Reports from major U.S. telecommunications companies or industry analysts

U.S. Commerce Department Initiates Ban on China Telecom, Citing National Security Risks

Dec 17, 2024, 03:20 AM

The U.S. Department of Commerce has initiated measures to ban the remaining operations of China Telecom in the United States, citing national security risks. The preliminary finding, detailed in a notice to China Telecom Americas, suggests that the company's presence in American networks and its cloud services could potentially be exploited by the Chinese government to access sensitive U.S. data. This action follows concerns over a broad hack of American telecommunications firms by China, which reportedly provided Beijing with access to data and conversations. The Commerce Department has given China Telecom 30 days to respond, with the final decision on a ban likely to be made by the Trump administration. The move is largely symbolic, as the U.S. had previously reduced China Telecom's operations in the country, with the Federal Communications Commission revoking its licenses to provide phone services in October 2021.