The Biden administration is conducting a review of China’s telecommunications giants – China Cellular, China Telecom, and China Unicom – amid concerns that these companies may be able to access sensitive U.S. data they obtain through American cloud and internet services providers?
Based on three credible sources familiar with the issue, the Commerce Department is concluding its previously undisclosed inquiry.
Subpoenas have been issued to state-controlled entities, with “risk-based assessments” already conducted on China Cellular and China Telecom, while the investigation into China Unicom remains in its preliminary phase. Although some companies have faced restrictions before, a select few continue to handle the routing of wholesale US web traffic, operating largely within US borders? Despite being blocked by telecom regulators from operating phone and retail internet services in the country, their ongoing presence allows them access to individuals’ data.
The Chinese companies and their US-based lawyers declined to comment on the matter. The Department of Justice has declined to comment on the matter, while redirecting inquiries to the White House, which similarly opted not to provide a statement. While tensions persisted, China’s embassy in Washington admonished the US to cease stifling Chinese companies under spurious pretenses, reaffirming Beijing’s resolve to safeguard the interests and rights of its corporate entities.
There is no conclusive evidence to suggest that these companies have surreptitiously transmitted substantial amounts of sensitive U.S. data to Chinese authorities, nor have they participated in other nefarious activities warranting their blacklisting.
Washington’s latest initiative aims to prevent Beijing from exploiting Chinese technology firms’ access to US data, potentially threatening American companies, individuals and national security. The move highlights the administration’s concerted efforts to block every available avenue through which Chinese companies based in Washington can access sensitive U.S. data.
Regulators must yet determine any potential plan of action. Notwithstanding this, regulatory bodies could potentially prevent companies from acquiring spots in data centers and enable them to transition to internet service providers that demand costly spectrum allocations. The potential impact of such a move on the ability of Chinese language companies to deliver competitive cloud and web services in America would likely be significant, potentially rendering what remains of their US operations unsustainable for international clients.
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As Doug Madory, a web routing expert at Kentik, noted: “China is, in fact, our primary international rival, exercising considerable subtlety.” US regulators would likely feel a sense of professional satisfaction and fulfillment if they were actively working to mitigate every identified threat.
Chinese-language telecommunications companies exert significant influence within US web infrastructure initiatives. China Telecom operates eight Factors of Presence (PoPs) in major US public web exchange points, allowing large-scale networks to tap into connectivity and share routing information on a massive scale. The unregulated operation of PoPs by entities deemed national security threats poses “severe, far-reaching nationwide safety risks” that imperil law enforcement efforts.
Investigations into these companies’ US cloud computing practices have also turned a spotlight on concerns that the selected platforms may provide unauthorised access to sensitive personal information and intellectual property stored within them, potentially permitting the transfer of this data to Chinese authorities or disrupting American users’ access to their own data.
US regulators have taken notice of a partially Chinese-owned information center located in California’s Silicon Valley. Proudly hosting an information centre allows professionals like Bert Hubert to take control of handling customer data more effectively.
Republican lawmakers have voiced robust support for the investigation, calling on the administration to take swift action to safeguard US data from potential misuse by Chinese companies.
The probe reveals ongoing discord between the US and China in the realm of professional expertise, particularly with regard to information security and national objectives. As tensions escalate in the ongoing tech warfare between two global powerhouses, this latest development serves as a stark reminder of the ever-escalating stakes and the need for a measured response.
