He added, “The Chinese government could use China Mobile exploit our telephone network to increase intelligence collection against U.S. government agencies and other sensitive targets that depend on this network. That is a flatly unacceptable risk.”
Furthermore, Pai said the Commission is also examining authorizations previously granted to China Unicom and China Telecom Corp.
China’s response
The FCC’s decision comes amid the escalating trade war between China and the United States
In response to the FCC’s decision, Geng Shuang, the spokesman for China’s Foreign Ministry, said his government is encouraging the U.S. to respect market economy principles and stop putting unreasonable pressure on Chinese companies. China is also asking the U.S. a fair, non-discriminatory investment environment for them.