National Security Threat? US Targets China Telecom’s American Subsidiary
The U.S. Department of Commerce is taking new steps to tighten measures against the American subsidiary of China Telecom, citing concerns that the company’s access to data through cloud and web services could be leveraged to transmit sensitive information to Beijing.
According to Reuters, the department has issued a preliminary determination asserting that the company’s operations within the U.S. pose a threat to national security, granting a 30-day period for response.
In 2021, the Federal Communications Commission (FCC) banned China Telecom Americas from operating in the U.S. over similar concerns. Subsequently, in 2022, the FCC revoked the license of China Unicom, and in 2019, it denied China Mobile’s application to provide telecommunications services in the country. Despite these restrictions, Chinese companies continue to offer cloud services and internet traffic routing, granting them potential access to data from American users.
Washington has grown increasingly alarmed by the threat of cyberattacks linked to Salt Typhoon, which target telecommunications companies to steal call data. Senators warn that such an attack could become the largest hacking incident in U.S. telecommunications history. Over the summer, the Biden administration initiated investigations into the cloud and web service activities of China Telecom, China Mobile, and China Unicom.
In response to these developments, the FCC has proposed enhanced measures to secure internet traffic routing, with particular focus on the Border Gateway Protocol (BGP). The protocol’s vulnerabilities have allegedly been exploited by China Telecom on six occasions to redirect American internet traffic. The FCC noted that, despite existing bans, Chinese companies may still provide data center services to U.S. users, urging additional measures to address these security risks.
