Trump Administration Moves To Block China Mobile From Offering Services In U.S.

(RTTNews) - In a move that could further inflame trade tensions between the U.S. and China, President Donald Trump's administration has recommended blocking China Mobile from offering telecommunications services from within the U.S.

A statement from the National Telecommunications and Information Administration, an agency of the Commerce Department, attributed the recommendation to national security concerns.

"After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved," said David Redl, NTIA Administrator and Assistant Secretary of Commerce for Communications and Information.

Redl said the NTIA subsequently recommends that the Federal Communications Commission deny China Mobile's Section 214 license request.

The decision by the NTIA comes amid an ongoing trade dispute between the U.S. and China, with tariffs on billions of dollars worth of U.S. and Chinese goods set to take effect later this week.

The NTIA claimed state-owned China Mobile is subject to exploitation, influence, and control by the Chinese government.

As a result, the NTIA argued granting China Mobile's application would "produce substantial and unacceptable national security and law enforcement risks."

Republican Senator Marco Rubio, R-Fla., applauded the decision in a post on Twitter on Tuesday, suggesting every Chinese telecommunications company poses grave security risks.

"Agree with this decision 100%. It would be grossly irresponsible to allow #ChinaMobile to operate in the U.S. market. Like every #China telecommunication company, they pose a grave security risk," Rubio tweeted.

Last month, the Senate voted 85 to 10 in favor of a defense policy bill that included a provision that would essentially kill the Trump administration's agreement to end crippling sanctions on Chinese telecom giant ZTE Corp.

The bill would restore penalties on ZTE for violating export controls and prohibit government agencies from purchasing or leasing telecommunications equipment or services from the company.

Commerce Secretary Wilbur Ross had previously announced an agreement lifting an order that banned ZTE from buying American products.

The agreement included a $1 billion fine against ZTE and forced the company to replace its board of directors and executive team and install a U.S.-chosen compliance team.

The bill must still be reconciled with a version previously approved by the House, and the White House is pushing negotiators to revise the ZTE language in the joint conference committee.