TRUMP Officials Blocking China Mobile Service For National Security

China Mobile International
  • US Government to block China Mobiles.

  • Due to U.S National security Govt takes this decision.

  • China Mobile shares down to 2.6 percent at Tuesday Morning.

  • China Mobile applied to offer Voice and data services

On Monday, Trump officials deny China Mobile entry into the U.S. The National Telecommunications and Information Administration (NTIA), recommended that the Federal Communications commission (FCC) should deny the request. This decision has taken for National Security.

By giving access to China Mobile to the US telecommunications, it could be in spying form, all phone calls and other communication from US government could pass through China Mobile’s network, even if the agencies are not customer of the operator.

“Because China Mobile is subject to exploitation, influence, and control by the Chinese government, the Executive Branch believes that granting China Mobile’s application would produce substantial and unacceptable national security and law enforcement risks,” the telecommunications agency said in a filing to the FCC.”

Reuters reported, Ramakrishna Maruvada, a Singapore based analyst with Daiwa securities said the impact of the running on China Mobile’s business is very tiny sice it derives most of its income from the domestic market.

This doesn’t move the needle, “Maruvada said, adding the timing of his decision was to be viewed in the context of the U.S-China trade frictions.

China Mobile have more than 900 million mobile customers, so the US administration rejection could affect the company revenue.

The decision comes after the trade war between US and China.

In March, Trump’s administration had blocked chipmaker Broadcom’s (AVGO) $117 billion bid for rival Qualcomm (QCOM).

According to report of Financial Times,

Afer President Barack Obama and Xi Jinping agreed in 2015 to refrain from government sponsored Cyber-espionage for commercial purposes, US experts noted a decline in Chinese hacking. However, US section 301 investigation into technology theft by China accused Beijing of continuing such attacks to further state industrial policy.

The NTIA ruling largely referred to pre-2015 assessments of China Cyber espionage against the U.S. Accompanying evidence containing more recent assessments was classified.

US Intelligence warned in February that China was trying to gain access of U.S intellectual properties.

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