China Telecom, China Mobile Face US Government Investigations Over Data Misuse Concerns

By Jace Dela Cruz

Jun 25, 2024 07:12 AM EDT

The United States (US) has launched investigations into China Mobile, China Telecom, and China Unicom, focusing on potential risks these firms pose by accessing American data through their US cloud and internet operations. 

The logo of state-owned telecommunications firm China Unicom is seen in Beijing on January 28, 2022.
(Photo : JADE GAO/AFP via Getty Images)

US Launches Probes Into China Mobile, China Telecom, and China Unicom

According to Reuters, the probe, led by the Commerce Department, will scrutinize whether these state-backed companies could share sensitive information with Beijing.

Three sources told Reuters that the investigation involves being subpoenaed and completing risk-based analyses for China Mobile and China Telecom. However, the investigation into China Unicom reportedly remains in its earlier stages.

Despite being barred from providing telephone and retail internet services in the US, the companies still maintain a minor presence in the country through their cloud services and wholesale internet traffic routing. 

READ NEXT: China Pushes for More Samsung Investment Amid US-China Chip Tension 

Response of China

The Chinese Embassy in Washington responded by urging the US to cease what it described as unwarranted suppression of Chinese firms. It emphasized that China will continue to uphold the rights and interests of its companies. 

READ MORE: China to Impose Export Bans on Some Aerospace Equipment, Citing National Security Concerns

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