US' intensifying curbs on Chinese telecom firms will backfire ...

In its latest move to block Chinese companies in the telecommunications sector, the US has added China Telecom (Americas) Corp and China ... SOURCE / COMPANIES Update:US'intensifyingcurbsonChinesetelecomfirmswillbackfire:analysts ByGTstaffreportersPublished:Mar26,202212:30PMUpdated:Mar30,202210:33PM Photo:CFPInitslatestmovetoblockChinesecompaniesinthetelecommunicationssector,theUShasaddedChinaTelecom(Americas)CorpandChinaMobileInternationalUSAtoitslistofcommunicationsequipmentandserviceprovidersdeemedso-calledthreatstoUSnationalsecurity.Themove,followingtheUS'recentdecisiontobarotherChinesetelecomcarriersintheUS,furthersignalsthecountry'sdecouplingintentionbypoliticizingbusinessoperations,whichwillhurtitsownbusinessenvironmentanddevelopmentofitstelecomindustry,ChineseexpertstoldtheGlobalTimes.TheUSFederalCommunicationsCommission's(FCC)PublicSafetyandHomelandSecurityBureauonFridayaddedequipmentandservicesfromtwoChineseentities-ChinaTelecom(Americas)CorpandChinaMobileInternationalUSAInc-aswellasRussia'sAOKasperskyLabtoitslistofcommunicationsequipmentandservicesthathavebeendeemed"athreattonationalsecurity,"accordingtoapressreleasefromtheFCC.Previously,inMarch2021,theregulatorputfiveChinesecompaniesonthelist-HuaweiTechnologiesCo,ZTECorp,HyteraCommunicationsCorp,HangzhouHikvisionDigitalTechnologyCoandDahuaTechnologyCo.TheFCCsaidit"willcontinuetoupdatethelistasothercommunicationsequipmentandservicesmeetthecriteriaunderthelaw." TheChineseEmbassyinWashingtonrespondedonFriday,sayingthattheFCChad"abusedstatepowerandmaliciouslyattackedChinesetelecomoperatorsagainwithoutfactualbasis.TheUSshouldimmediatelystopitsunreasonablesuppressionofChinesecompanies.ChinawilltakenecessarymeasurestoresolutelysafeguardthelegitimaterightsandinterestsofChinesecompanies,"Reutersreported.TheChinaAssociationofCommunicationEnterprises(CACE)saidinastatementreleasedonWednesdaythatitisstronglydissatisfiedwiththedecision,andwillfirmlysafeguardthelegitimaterightsandinterestsofChineseinformationandcommunicationenterprisesasarepresentativeoftheindustry."TheFCChasabusedstatepowertosuppressChinesefirmsusingso-callednationalsecurityconcerns.Thisisnakedeconomicandtechnologicalbullying.ItisablatantdenialoftheprinciplesofmarketeconomythattheUShasalwayschampioned.IthasseverelydamagedthebusinessenvironmentintheUSandharmedthelegitimaterightsandinterestsofChinesecompaniesandconsumersaroundtheworld,includingUSusers,"theCACEsaid.TheUSshouldwithdrawitsunfairdecisionagainstChinesecompanies,stopgeneralizingtheconceptofnationalsecurityandpoliticizingeconomicissues,andcreateafair,justandnon-discriminatorybusinessenvironmentforChinesecompaniestoinvestanddevelopintheUS,theCACEhiglighted.InstatementssenttotheGlobalTimesearlythisweek,bothChinaMobileandChinaTelecomsaidtheywillcloselywatchthesituationandtakerelevantmeasurestofirmlyprotectthecompanies'legitimaterightsandinterests. ChinaMobilealsonotedthattheinclusionintothelistisa"deliberatesmearandunfairtreatmentagainstChinesecompanies"withoutfacts.Ontheotherhand,ChinaTelecomsaidtheFCC'smovetoadditsAmericanfirminaso-called"coveredlist"isadecisionthatgeneralizedtheconceptofnationalsecurityandabusednationalpowerwithoutjustifiedevidence.Itstressedthatthefirmhasmaintainedcompliantoperationsandstrictlyabidedbylocallawsincountriesandregions,includingtheUS. "ForChinesefirms,beingincludedonthelisthasalimitedimpactduetothetinybusinessscale,"XiangLigang,director-generaloftheInformationConsumptionAlliance,anindustryassociation,toldtheGlobalTimesonSaturday.Inbusinessterms,theUS'decouplingmove,whichappearstobeintensifying,willeventuallyhurtitsowntelecomindustry,andthegapbetweenChinaandtheUSparticularlyinthe5Geraislikelytowiden,Xiangsaid,notingthatsuchUSpracticeswillalsoharmitsownbusinessenvironmentduetothelackoftrustandcredibility.TheFCCdecidedonMarch16torevoketherightofChinesetelecomcompanyPacificNetworksCorpanditswhollyownedsubsidiaryComNet(USA)LLCtoproviderelevanttelecomservicesintheUS.China'stopindustryregulator-theMinistryofIndustryandInformationTechnology(MIIT)-onThursdayurgedtheUStowithdrawitsdecisionsagainstthetwoChinesetelecomcompanies,stoppoliticizingeconomicissues,andcreateafair,justandnon-discriminatoryenvironmentforChinesecompaniestoinvestanddevelopintheUS.ThemovehasseverelydamagedthebusinessenvironmentintheUS,andithasharmedthelegitimaterightsandinterestsofChinesecompaniesandconsumersaroundtheworld,includingUSusers,theMIITsaid.ThecrackdownonChinesetelecomfirmsinthenameofnationalsecurityhasintensifiedunderUSPresidentJoeBiden'sadministration.Previously,theFCCrevokedthelicensesofChinaTelecomAmericasandChinaUnicom(Americas)OperationstoproviderelevanttelecomservicesintheUS.BothfirmshadbeenoperatingintheUSforabouttwodecadesbeforetheirlicenseswererevoked.In2021,threeChinesetelecommunicationscompanies-ChinaMobile,ChinaUnicomandChinaTelecom-weredelistedfromtheNewYorkStockExchange,inlinewithUSinvestmentrestrictionsdatingto2020.ExpertswarnedthattheUS'targetingoftheChinesetelecomfirmsintensifiesitsimageasabullyontheinternationalstageandrisksapotentialresponseinreturn."ItisaconsistentattackonChinesecompaniesbytheUS,withtheill-intendedwishtoputpressureonChina,whileattemptingtoseizetheso-calledinitiativeindealingwithChinaindiplomaticterms,"LiuDingding,anindustryanalyst,toldtheGlobalTimes. 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