The Trump administration is moving to bar 2 prominent Chinese tech and telecom firms from doing business in the U.S. as the trade wars heat up
U.S. President Donald Trump pauses while speaking during the 38th annual National Peace Officers Memorial Day service at the U.S. Capitol in Washington, D.C., U.S., on Wednesday, May 15, 2019. Trump is poised to delay a decision by up to six months to impose auto tariffs to avoid blowing up negotiations with the EU and Japan and further antagonizing allies as he ramps up his trade war with China, according to people close to the discussions.
On Wednesday, President Trump declared a national emergency to respond to"the threat posed by the unrestricted acquisition or use in the United States of information and communications technology or services" from hostile foreign actors. The order directs the Commerce Department, in consultation with other relevant departments and agencies, to review and reject any transaction from a foreign power deemed to pose an undue threat to U.S. security.
"This will prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests," commerce secretary Wilbur Ross said in a statement.deny China Mobile's applicationFCC chairman Ajit Pai pointed out that the telecom provider"ultimately is owned and controlled by the Chinese government."
One odd note about the timing of that proceeding: China Mobile had submitted its application to provide telecom services back in 2011. Then, last year, a division of the Commerce Department recommended that the FCC reject the application. And finally, as the tariff wars between the United States and China have been ramping up, the application is, ultimately, denied.
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