The United States has initiated an investigation into Chinese telecommunications giants China Mobile, China Telecom, and China Unicom over concerns that these companies might be transferring US data to the Chinese government through their US cloud and wholesale routing services. This scrutiny follows the US Commerce Department issuing subpoenas and conducting “risk-based analyses” on China Mobile and China Telecom, although China Unicom’s examination remains incomplete. These state-owned enterprises, which dominate China’s mobile market with approximately 1.7 billion domestic customers, had their US operations significantly restricted by the Federal Communications Commission (FCC) in 2019, when they were barred from offering telephony and broadband services due to national security issues. Despite these sanctions, their US-based wholesale cloud services continue to function, sparking fresh concerns.The current investigation is considering extending sanctions to encompass these wholesale cloud services, internet exchange points (PoPs), and other cloud offerings. The potential risks include that US data could be routed through China, making it susceptible to access by Chinese authorities. The overarching trend appears to be increasing scrutiny and restrictions on Chinese telecommunications firms operating in the US, driven by fears of data security and national security. The Chinese embassy has responded by accusing the US of acting on unfounded pretexts and has asserted that China will defend the interests of its businesses. These developments accentuate the ongoing geopolitical tensions between the US and China, underscoring the broader issue of trust and cybersecurity in international telecom operations.
