The companies still have a small presence in the United States, for example, providing cloud services and routing wholesale U.S. internet traffic.
The Biden administration is investigating China Mobile, China Telecom and China Unicom over concerns the firms could exploit access to American data through their U.S. cloud and internet businesses by providing it to Beijing, three sources familiar with the matter said.
Reuters found no evidence the companies intentionally provided sensitive U.S. data to the Chinese government or committed any other type of wrongdoing.The investigation is the latest effort by Washington to prevent Beijing from exploiting Chinese firms' access to U.S. data to harm companies, Americans or national security, as part of a deepening tech war between the geopolitical rivals.
"They are our chief global adversary and they are very sophisticated," said Doug Madory, an internet routing expert at internet analysis firm Kentik. "I think would not feel like they were doing their job if they weren't trying to shore up every risk."China Telecom, China Mobile and China Unicom have long been in Washington's crosshairs.
China Telecom has previously denied the government's allegations and told U.S. agencies that routing problems are common and occur on all networks. Bill Woodcock, executive director of Packet Clearing House, the intergovernmental treaty organization which is responsible for the security of critical Internet infrastructure, said traffic flowing through these points would be vulnerable to metadata analysis, which can capture key information about the data's origin, destination, size and timing of delivery. They also might allow for deep packet inspection, where parties can glimpse the data's contents, and even decryption.
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