Asian Tech Press (Oct 28) -- The U.S. government has revoked the license of one of the three major Chinese state-owned telecommunications companies to operate in the country.

The Federal Communications Commission (FCC) announced Tuesday that it has stopped China Telecom from providing telecommunications services in the United States and required it to cease all services previously authorized by U.S. law within 60 days.

The communications regulator said China Telecom Americas (CTA), a U.S. subsidiary of a Chinese state-owned enterprise, may be under the influence and control of the Chinese government, and that the license revocation is to protect the U.S. telecommunications infrastructure from potential security threats.

In April 2020, the U.S. was preparing to revoke China Telecom Americas' operating license over national security concerns. And in late December of that year, the NYSE announced that it would follow an executive order issued by the Trump administration to initiate the process of delisting securities of "Communist Chinese military companies", including China's three largest telecommunications companies.

China Telecom, which has provided services in the United States for nearly 20 years, described the FCC's decision as "disappointing."

"We plan to pursue all available options while continuing to serve our customers," the company said in a statement.

Shu Jueting, spokesperson from China's Ministry of Commerce said in a briefing Thursday that the U.S. move generalizes the concept of national security, abuses state power, maliciously suppresses Chinese companies without any factual basis, which goes against market principles and undermines the cooperation between China and the United States.

China has made a formal complaint to the United States on the issue, Shu said. And China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.