China is critical of the US plan to ban Chinese telecom operators
China is critical of the US plan to ban Chinese telecom operators

The Chinese government on Thursday urged Washington to abandon its efforts to prevent Chinese public telecommunications companies from entering the United States in the new confrontation between technology and security.

On Wednesday, the Federal Communications Commission voted to revoke licenses for US companies because they pose a security risk because the Beijing government controls them.

The commission said the three telecom companies - China Unicom, Pacific Networks and ComNet - had failed to demonstrate that their US operations had not been unduly affected by Beijing.

The committee stripped the company of its right to operate in the United States, saying the threat to the physical network allied with communist China was one that we must address head-on.

"When it comes to communist China, we have set high standards for our company over the past few years," she added.

The Chinese Foreign Ministry has accused Washington of using security complaints to harm the interests of Chinese business competitors.

A Chinese Foreign Ministry spokesman said the United States should stop false promotion of national security, politicize economic issues, and stop using state power to inappropriately crack down on Chinese companies.

After the New York Stock Exchange decided in January to ban trading in troubled companies, the move is expected to bring more bad news to troubled companies in the United States.

China Unicom, one of the world's largest telecom companies, issued a statement in its ruling on Wednesday that it has never been involved in illegal acts and expects the committee to conduct a full, fair and realistic review of the company's actions.

The move comes as US regulators have launched a wider campaign to crack down on China Telecom, which they believe is a threat to national security.

A Chinese Foreign Ministry spokesman said: Beijing is taking necessary measures to protect the legitimate rights and interests of Chinese companies.

In the past, the Chinese authorities issued similar warnings, but these warnings usually take no action.

These three companies sell international voice and data services. "The two companies were asked to clarify their ownership and operations, but they did not address the serious national security threats that threaten the continuation of their operations in the United States," the committee said.

Previously, the state-owned China Mobile was banned from entering the US market in 2019 for security reasons.

Trump has also banned telecoms equipment giant Huawei and a few other Chinese tech companies from taking advantage of most American technology.

Trump has issued an order barring Americans from investing in the securities of companies the Pentagon says are linked to the Chinese military.

Last week, regulators placed technology giant Huawei on a list of telecoms companies it deemed unacceptable risks, indicating that hopes for change with the United States under Biden's leadership are unfounded.

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