The government of the US moved to block telecommunications company China Mobile from offering its services to the telecommunications market in the USA recommending the application it submitted by rejected due to the firm posing a risk to national security.
Giving China Mobile access to the USA telecommunications market could lead to a spike in Chinese spying, it said. The U.S. will impose tariffs on goods from China worth more than $34 billion starting July 6, and Beijing likely will respond with its own tariffs on U.S. products.
China Mobile is the world's largest telecom, and accounts for nearly 900-million subscribers.
The move by the NTIA - an arm of the Commerce Department that advises US President Donald Trump on telco and information issues - comes at a time of heightened tensions between the US and China over trade and telecom issues.
The recommendation comes amid rising tensions between the U.S. and China over national security concerns.
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"After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved", the NTIA said in a statement about the mainland firm's 2011 application to the FCC.
China Mobile did not respond to request for comment.
The company didn't intend to offer domestic phone and mobile services, but it would be able to connect to domestic networks.
Last month, the Senate voted 85 to 10 in favor of a defense policy bill that included a provision that would essentially kill the Trump administration's agreement to end crippling sanctions on Chinese telecom giant ZTE Corp.
Still, the 205-page, heavily redacted document offered a window into the U.S. government's assessment of national security risks of doing business with Chinese entities, especially one with ties to the Chinese government as close as China Mobile's and in an industry as critical as telecommunications.
The statement indicates the U.S. government has presented issues to China Mobile that could potentially have been addressed, but details aren't provided.
The Chinese spokesperson said that Beijing was well prepared to take the necessary measures if the tariffs came into force.
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