China Telecom requests court to overturn U.S. ban, report says

China Telecom has gone to court in a bid to reverse the United States Federal Communications Commission’s (FCC) decision over the company’s authorization to operate in the country, according to a report.

The FCC said in its order: “China Telecom Americas, a U.S. subsidiary of a Chinese state-owned enterprise, is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight”.

It added that “China Telecom Americas’ ownership and control by the Chinese government raise significant national security and law enforcement risks by providing opportunities for China Telecom Americas, its parent entities, and the Chinese government to access, store, disrupt, and/or misroute US communications, which in turn allow them to engage in espionage and other harmful activities against the United States.”

The FCC issued an order for China Telecom to stop providing domestic and international services in late October in response to recommendations from the Trump-era Justice Department.

In addition, the Chinese telco told the U.S. Appeals Court for the District of Columbia, on Monday, that the revocation of its authorization would cause severe harm to its business, reputation, and relationships, according to Reuters.

It also reportedly claimed that the FCC had no evidence of the company being a national security or law enforcement risk.

China Telecom’s claim is similar to one used earlier in the year, especially when Xiaomi requested removal from the Pentagon’s Communist Chinese Army Company (CCMC) official list.

Xiaomi stated in these proceedings, that the CCMC designation would cause “immediate and irreparable damage to Xiaomi,” including blocking access to the U.S. capital markets.

Therefore, U.S. courts ruled in favor of Xiaomi, having the Ministry of Defense arguing to remove the designation and allow the company to run its business in the country.