Washington: While standing there the allegation that the Chinese companies are trying to infiltrate into key US networks, the US communications regulator revoked China Telecom's legal ground to continue its service in the US citing the country's security.
With the revocation of the licence by the US Federal Communications Commission (FCC), China Telecom will have to stop its services in the US in 60 days. China Telecom, the largest Chinese telecommunications company, has had the authorisation to provide telecommunications services for nearly 20 years in the United States.
The FCC statement revoking the license read that "China Telecom is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight".
The regulator added that Chinese government ownership and control "raise significant national security and law enforcement risks by providing opportunities" for the company and the Chinese government "to access, store, disrupt, and/or misroute US communications".
Calling the FCC decision disappointing, China Telecom America said that it will explore all available legal options while continuing its service in the US.
The news sent stocks in US-listed Chinese tech firms down sharply and their stocks in Hong Kong also suffered hefty selling, pulling the Hang Seng index down more than 1% lower.
China Telecom served more than 335 million subscribers worldwide as of 2019 and claims to be the largest fixed-line and broadband operator in the world, according to a Senate report. It also provides services to Chinese government facilities in the United States.