A federal appeals court on Tuesday rejected China Telecom Corp’s challenge to a Federal Communications Commission order withdrawing the company’s authority to provide services in the United States, reports Reuters.
A three-judge panel of the US Court of Appeals for the District of Columbia rejected the bid by the US arm of China Telecom to reverse the order that took effect in January. The FCC said in 2021 that China Telecom (Americas) “is subject to exploitation, influence and control by the Chinese government.”
FCC Chairwoman Jessica Rosenworcel on Tuesday praised the ruling upholding the unanimous commission decision she said “was based on the recommendation of national security agencies that found that China Telecom’s operations in the US provided opportunities for increased Chinese state-sponsored cyber activities, including economic espionage and the disruption and misrouting of US communications traffic.”