The investigation is the latest effort by Washington to prevent Beijing from exploiting Chinese firms' access to US data to harm companies, Americans or national security
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The companies still have a small presence in the United States, for example, providing cloud services and routing wholesale US internet traffic. That gives them access to Americans’ data even after telecom regulators barred them from providing telephone and retail internet services in the United States.
Regulators have not yet made decisions about how to address the potential threat, two of the people said. But, equipped with the authority to probe internet services sold into the US by companies from “foreign adversary” nations, regulators could block transactions allowing them to operate in data centers and route data for internet providers, the sources said.
“China Telecom’s US operations… provide Chinese government-sponsored actors with openings to disrupt and misroute US data and communications traffic,” authorities said at the time.
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