The Trump administration is opposing China Mobile Ltd.'s entry into the U.S. telecommunications market, citing national security concerns.
The National Telecommunications and Information Administration, an agency of the U.S. Commerce Department, said it recommended the Federal Communications Commission deny the Chinese operator's application to offer telecommunications services from within the U.S. The license request was submitted in 2011.
"After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved," David Redl, assistant secretary for communications and information, U.S. Department of Commerce, said in a July 2 statement.
The recommendation comes amid rising trade tensions between the U.S. and China. On June 26, the U.S. House of Representatives cleared a bill to tighten foreign investment rules as a way of countering Chinese efforts to acquire American technology. The bill was introduced shortly after the U.S. government agreed to a $1.4 billion settlement with ZTE Corp. to lift a seven-year export ban on the telecommunications equipment maker.
The Commerce Department in April slapped export restrictions on ZTE for making false statements and violating international sanctions.