tuesday, 3 july of 2018

Economy

Trump blocks China Mobile from US market

The world's largest telecom carrier, China Mobile, has suffered a setback in its efforts to offer services in the United States. The US Commerce Department doesn't want the firm to operate in the country.

The US government moved to block China Mobile from offering services to the American market, recommending its application be rejected on grounds of "national security risks."

"After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved," said a statement by the National Telecommunications and Information Administration (NTIA).

In its recommendation, the NTIA said its assessment "rested in large parts on China's record of intelligence activities and economic espionage targeting the US," along with China Mobile's size and technical and financial resources.

Investors not amused

The administration added the company was "subject to exploitation, influence and control by the Chinese government" and its operations posed "substantial and unacceptable national security and law enforcement risks in the current national security environment."

China Mobile is the world's biggest telecom carrier with 899 million subscribers. Its shares fell by 2.6 percent on Tuesday morning to their lowest level in more than four years.

The move to block the firm comes amid growing trade frictions between Washington and Beijing.

The United States is set to impose tariffs on $34 billion (€29.2 billion) worth of goods from China on July 6, which Beijing is expected to respond to with tariffs of its own.

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(Published by DW, Jul 03, 2018)

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