US moves to keep China Mobile out

Headquarter of China Mobile in Beijing financial street

The US intelligence community and other officials found that China Mobile's application "would pose unacceptable national security and law enforcement risks", according to the NTIA filing.

The advisory body, the National Telecommunications and Information Administration, is part of the Department of Commerce.

The government of the US moved to block telecommunications company China Mobile from offering its services to the telecommunications market in the USA recommending the application it submitted by rejected due to the firm posing a risk to national security.

In return, the United States said it would remove the ban - a negotiation that has been linked to wider trade tensions between the USA and China.

Meanwhile, on Friday, as part of the ongoing trade spat between the United States and China, the two giants are expected to introduce further tariffs on each other's goods.

China Mobile was the world's largest mobile phone operator in 2011, with more than 649 million subscribers, according to the filing.

"After significant engagement with China Mobile, concerns about increased risks to USA law enforcement and national security interests were unable to be resolved, " said the statement.

U.S. authorities have blocked a seven-year application from China Mobile to enter the domestic market, citing national security concerns that come amid rising trade tensions between the world's top two economies.

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"This doesn't move the needle", he said, adding the timing of the decision was to be viewed in the context of the US-China trade frictions.

He added the department's National Telecommunications and Information Administration recommended the Federal Communications Commission turn down China Mobile's application to offer voice traffic between the United States and other countries.

China Mobile did not respond to request for comment.

The American government proceeded to stop China Mobile from entering the nation's telecommunications market, citing reasons that the company's application hinted for national security risks.

David Redl, assistant secretary for communications and information at the Commerce Department and head of the National Telecommunications Information Agency, signed off on the recommendation against granting China Mobile's license request.

If the deal went through, Redl wrote, "the Chinese government, through China Mobile, would have a greater ability to monitor, degrade and disrupt USA government communications". The U.S.in June reached a deal to allow ZTE to get back in business after the Chinese telecommunications company pays a record fine and agrees to management changes.

That represented the first time a Chinese telecommunications network operator had been singled out as a security threat in the US. The company is owned by the Chinese government.

It warns that Chinese spying could be facilitated by the proposals and that wouldn't be limited to customers of the China Mobile proposed service, but anything that the network touched - and given that could include United States businesses, that's potentially bigger than the sum of its prats.

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