China Mobile was the world's largest mobile phone operator in 2011, with more than 649 million subscribers, according to the filing.
The National Telecommunications and Information Administration or NTIA said through a prepared statement on its website that the FCC or Federal Communications Commission should deny the 2011 application by the Chinese firm that is state-owned to offer its telecommunications services between the USA and other nations.
Commerce Department assistant secretary David Redl said that after "significant engagement" with the Chinese mobile giant, "national security interests were unable to be resolved".
The National Telecommunications and Information Administration (NTIA), an agency under the US Department of Commerce, said China Mobile posed a security risk in its recommendation that the Federal Communications Commission (FCC) deny the Hong Kong-listed network operator's application to build its own infrastructure and provide consumer and corporate telecommunications services in the US.
Back in 2011, China Mobile took the first legal step to make its entrance in the USA market, one that would allow it to offer wireless phone service to individuals within the nation.
"We urge relevant parties in the USA to abandon the Cold War mindset and zero sum game", added Kang, who also warned that China was "well prepared" if the United States made good on its tariff threats.
China always encourages its companies to operate in accordance with market rules and to respect the laws of the countries it operates in, he said.
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The decision by the NTIA comes amid an ongoing trade dispute between the US and China, with tariffs on billions of dollars worth of USA and Chinese goods set to take effect later this week.
China Mobile, owned by China Mobile Communications Corp., "is wholly owned by a sovereign state, the People's Republic of China", the agency said in the filing. The global calling business accounts for only a tiny portion of China Mobile's revenue, according to Ramakrishna Maruvada, an analyst with Daiwa Capital Markets. This is clear in China Mobile's shares declined for only 2% today, July 3 and it is the company's lowest close in over four years!
The American government proceeded to stop China Mobile from entering the nation's telecommunications market, citing reasons that the company's application hinted for national security risks.
The NTIA said its assessment rested "in large part on China's record of intelligence activities and economic espionage targeting the US, along with China Mobile's size and technical and financial resources".
US senators and spy chiefs warned in February that China was trying, via means such as telecommunications firms, to gain access to sensitive USA technologies and intellectual properties.
On Thursday, US lawmakers passed a spending bill for the Department of Defense that banned the Pentagon from buying from ZTE and Huawei, two other Chinese telecommunications companies whose expansion plans in the US have raised national security concerns.
The United States government under President Trump has adopted an increasingly protectionist stance, and has blocked other Chinese deals such as Broadcom's hostile takeover attempt of US-based Qualcomm.