U.S. Commerce Department Intensifies Scrutiny on China Telecom

The U.S. Commerce Department is intensifying its scrutiny of China Telecom Americas due to concerns about the potential misuse of American data, linking it to national security risks. The Federal Communications Commission previously revoked China Telecom Americas' U.S. operating authorization, amid broader concerns about Chinese telecommunications firms’ activities.

The U.S. Commerce Department is escalating efforts against China Telecom's U.S. unit over national security concerns, sources told Reuters. Concerns center on China Telecom potentially handing American data to Beijing via its U.S. cloud and internet operations. The department has issued a preliminary determination advising these services pose security risks, granting the company 30 days to respond.

This action follows a 2021 Federal Communications Commission (FCC) move to revoke China Telecom Americas' authorization to operate in the U.S., citing similar security worries. The company has yet to comment on these developments. Allegations have surfaced of a significant cyber-attack, termed Salt Typhoon, targeting U.S. telecommunications, believed to be the largest in history.

Increased vigilance follows the Biden administration's June investigation into Chinese telecommunications firms. The FCC is advancing proposals to enhance internet routing security amidst fears of China manipulating internet traffic. Despite previous service bans, these companies maintain a minimal U.S. presence, continuing to facilitate cloud services and wholesale internet traffic, raising further alarm among U.S. officials.

(With inputs from agencies.)