Washington moves to boost crackdown on China Telecom's US unit, source says (updated)

China Unicom Hong Kong

17/12/2024 01:44

(Adds previous actions against Chinese telecom companies, U.S.
concerns, no immediate comment from China Telecom in paragraphs
4-11)
    By David Shepardson and Alexandra Alper
       WASHINGTON, Dec 16 (Reuters) - The U.S. Commerce
Department is moving to further crack down on China Telecom's
 601728.SS  U.S. unit over concerns it could exploit access to
American data through their U.S. cloud and internet businesses
by providing it to Beijing, a source told Reuters.
    The source confirmed a New York Times report that the
department last week sent China Telecom Americas a preliminary
determination that its presence in U.S. networks and cloud
services poses U.S. national security risks and gave the company
30 days to respond.
     In 2021, the Federal Communications Commission revoked
China Telecom Americas' authorization to operate in the United
States, citing national security concerns.
    China Telecom Americas did not immediately respond to a
request for comment.
    There is growing alarm in Washington about China's alleged
efforts known as Salt Typhoon to infiltrate American
telecommunications companies and steal data about U.S. calls.
Senators have said the attack likely represents the largest
telecommunications hack in U.S. history.
    Reuters first reported in June that the Biden administration
was investigating China Telecom, China Mobile  600941.SS  and
China Unicom  0762.HK  over their U.S. cloud and internet
businesses.
    In June, the FCC advanced a proposal to boost
internetrouting security on networks in the face of concerns
raised by U.S. officials about China's ability to divert
internet traffic.
    The Chinese companies still have a small presence in the
United States, for example, providing cloud services and routing
wholesale U.S. internet traffic. That gives them access to
Americans' data even after the FCC barred them from providing
telephone and retail internet services in the United States.
    The Border Gateway Protocol (BGP) is central to the
internet’s global information routing system. The FCC said China
Telecom had used BGP vulnerabilities "to misroute United States
internet traffic on at least six occasions.
    The FCC in 2022 revoked China Unicom America's authorization
to operate in the United States. In 2019, the FCC rejected China
Mobile bid to provide U.S. telecommunications services.  
    FCC Commissioner Geoffrey Starks in 2022 raised alarm,
saying Chinese telecom firms could "continue to offer data
center services to American consumers" despite the revocation
and urged further action to address security concerns posed by
the centers.

 (Reporting by David Shepardson; Editing by Sandra Maler and
Sonali Paul)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))