The Biden Administration Investigates Chinese Telecom Companies Over Data Security Concerns
The Biden administration is currently conducting a review of China Mobile, China Telecom, and China Unicom out of concerns that these state-backed companies may potentially share American data accessed through US cloud and internet providers with Beijing.
The investigation, led by the Commerce Department, involves serving subpoenas to the companies and conducting ‘risk-based analyses’. While China Mobile and China Telecom have completed these analyses, the probe into China Unicom is still in its early stages.
Despite previous restrictions, these Chinese companies continue to operate cloud services and manage wholesale US internet traffic routing within the country, allowing them access to American data. The Commerce Department’s efforts are part of a broader strategy to prevent potential misuse of US data by Chinese firms that could pose risks to national security.
Potential Regulatory Actions
Regulators have not yet determined specific actions but may prevent transactions that grant Chinese companies access to data centers or high-priced spectrum internet providers. Such actions could significantly impact Chinese firms’ ability to offer competitive cloud and internet services in the US.
Experts highlight the national security risks associated with Chinese telecom companies’ extensive presence in US internet infrastructure systems, particularly regarding potential data security breaches and disruptions to American access to personal and intellectual property stored in the cloud.
Political Support and Future Outlook
Republican lawmakers have voiced strong support for the investigation, emphasizing the need to safeguard US data from potential exploitation by Chinese entities. The ongoing tensions between the US and China in the technology sector underscore the deepening tech war between the two global powers.
