MIIT strongly opposes US decision to revoke license of China Telecom unit

The Ministry of Industry and Information Technology said on Wednesday that it strongly opposes the US government's decision to revoke a license of China Telecom Americas.

China will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises investing and operating in the US, the MIIT said.

On Tuesday, the US Federal Communications Commission released an order on its website that asked China Telecom Americas to discontinue related services within 60 days.

On Wednesday, China's MIIT said in a statement on its website that China Telecom Americas has been operating in the United States for nearly 20 years. It has been abiding by US laws and regulations, and providing high-quality services to many customers in the US in accordance with commercial principles.

The MIIT further said the FCC's decision to revoke the Section 214 authority of China Telecom Americas was based on subjective speculation, without listing any facts to support the alleged violations of the law. Such a practice does not conform to the US image of being a market-oriented country, and has also harmed the legitimate rights and interests of global consumers, including US users, the MIIT said.

The ministry urged the FCC to withdraw its decision, treat Chinese telecom companies in a fair and nondiscriminatory manner, stop the wrongful practice of overgeneralizing the concept of national security and politicizing economic issues, as well as provide a fair, just and nondiscriminatory environment for Chinese companies that invest and operate in the US.

On Wednesday, China Telecom Corp Ltd said the FCC order lacked justification and harmed the legitimate rights and interests of China Telecom Americas.

China Telecom, the parent company of China Telecom Americas, said in a statement to China Daily, "China Telecom has strictly complied with the laws and regulations of China and related countries and regions including the United States, and has always been operating in accordance with applicable laws and regulations."

China Telecom further said it will keep in touch with China Telecom Americas, pay attention to relevant developments, communicate the impacts on its related businesses, and seek appropriate solutions.

Xiang Ligang, director-general of the Information Consumption Alliance, a telecom industry association, said the FCC order appears to be part of a concerted plan by the US to contain Chinese telecom companies.

It is tantamount to unreasonable suppression of Chinese enterprises through abuse of political power and a serious breach of international economic and trade rules, he said.

Shares of China Telecom appear to have shrugged off the US move. They stayed more or less flat at 4.21 yuan (66 cents) in Shanghai and slid 1.11 percent to HK$2.68 (34 cents) in Hong Kong on Wednesday.