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The U.S. government is probing China Mobile, China Telecom (OTCPK:CHJHF) and China Unicom (OTCPK:CHUFF) over concerns that the companies could exploit access to U.S. data via their American cloud and internet businesses by providing it to China, Reuters reported, citing people familiar with the matter.
Commerce Department’s authorities are carrying on the probe and have subpoenaed the state-backed companies. They have also completed “risk-based analyses” of China Mobile and China Telecom, however, are not as advanced in their investigation of China Unicom, the report added.
The news agency noted that it has found no proof that companies intentionally provided sensitive American data to the Chinese government
The investigations are the latest effort by the U.S. to prevent China from exploiting Chinese companies’ access to U.S. data to harm companies or national security, amid the ongoing tech tussle between the two nations.
Regulators have not yet decided on how to address the issue. They could restrict transactions enabling the companies to operate in data centers and route data for internet providers, the report noted.
China Telecom, China Mobile and China Unicom have had issues in the U.S. In 2019, the Federal Communications Commission, or FCC, denied China Mobile’s application to provide telephone services.
The agency also revoked China Telecom and China Unicom’s licenses to do the same in 2021 and 2022 respectively. In April, the FCC restricted the companies from providing broadband service. An FCC spokesperson noted that the agency stands by its concerns, the report added.