U.S. Commerce Department has launched an investigation into three major Chinese telecommunications companies
The China Mobile, China Telecom, and China Unicom due to concerns over potential exploitation of American data. This probe is focused on whether these companies might be providing data to Beijing through their cloud and internet services.
The current status of the investigation reveals that risk-based analyses for China Mobile and China Telecom have been completed. However, the investigation into China Unicom is less advanced. These investigations have not been publicly disclosed, and subpoenas have been issued to the companies involved.Despite being barred from providing telephone and retail internet services, these companies maintain a presence in the U.S.
So far, there has been no response from the Chinese companies or their U.S.-based lawyers. The Justice Department and the White House declined to comment on the matter, while the Chinese Embassy has urged the U.S. to stop suppressing Chinese companies. The Federal Communications Commission has expressed serious concerns regarding national security and law enforcement risks.This investigation is part of a broader pattern of regulatory actions against Chinese telecom firms.
Experts have emphasized the sophistication of China as a global adversary. Doug Madory of Kentik highlighted the risks posed by China’s advanced capabilities. Bert Hubert, a Dutch cloud computing expert, noted that ownership of data centers allows for greater opportunities to install back doors or bypass encryption.
The U.S. Commerce Department’s investigation into China Mobile, China Telecom, and China Unicom highlights the ongoing efforts to safeguard national security by scrutinizing foreign access to U.S. data. These measures, while potentially disruptive, are deemed necessary to mitigate risks associated with escalating U.S.-China tech tensions. As the probe continues, further regulatory actions may be taken to block transactions and operations in U.S.
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