U.S. Commerce Department Targets China Telecom

The U.S. Commerce Department is targeting the U.S. unit of China Telecom over concerns that it may compromise American data by providing it to Beijing. The department has issued a preliminary determination of national security risks, and the company has 30 days to respond.

The U.S. Commerce Department is intensifying its scrutiny on China Telecom's American operations, amid fears of potential misuse of access to U.S. data for the benefit of Beijing. This action follows the department's issuance of a preliminary determination indicating the risks to national security posed by the company.

A reliable source has confirmed that the department's decision stems from last week's report by the New York Times, which highlighted these concerns linked to China Telecom and its integration in U.S. networks and cloud services.

The company has been granted a 30-day period to counter the department's national security risk claims, as the apprehension over potential data leakage to China increases tension in international business relations.

(With inputs from agencies.)