China Telecom restricted by US agencies to operate in the US. Agencies feel that China’s telecom may allow the Chinese government to engage in harmful cyber activities.

China Telecom is the US subsidiary of a People’s Republic of China (PRC) state-owned telecommunications company. Last year, senators asked the FCC to review approvals of China Telecom and China Unicom to operate in the US.

The FCC (Federal Communication Commission) last May, voted to deny another state-owned Chinese Telecommunications Company.  The FCC citing risks that the Chinese government could use it for espionage against the US government.

Chine Telecom Americas rejected the allegations and said: “been extremely cooperative and transparent with regulations”. He requested to the United States to respect the economic principles.

China’s foreign ministry said on Friday that Beijing is “firmly opposed” to any action by the US against China Telecom.

US agencies highlighted China’s telecommunication companies. They are placed under scrutiny by US agencies. FCC alleged by different agencies of the US for substantial and unacceptable national security and risks associated with China Telecom’s operations.

Apprehension about China Telecom is that the companies could be controlled or influenced by China’s government.

These network and telecommunication companies can engage in malicious cyber activity enabling economic espionage.