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FDI: Entry and ownership rule
On July 2, 2018 the National Telecommunications and Information Administration (NTIA) announced its decision to block China Mobile from offering services to the U.S. telecommunications market. This subsidiary agency of the U.S. Department of Commerce recommended that China Mobile’s application be rejected because it posed national security risks. This case began in 2011, when China Mobile applied for a license through the Federal Communications Commission (FCC) to offer telecommunications services from within the United States. The FCC then requested views from other executive branch agencies on whether the application for the license was in the public interest of the United States. David J. Redl, Assistant Secretary for Communications and Information at the Department of Commerce, announced the agency’s conclusion in the following statement:
After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved. Therefore, the Executive Branch of the U.S. government, through the National Telecommunications and Information Administration pursuant to its statutory responsibility to coordinate the presentation of views of the Executive Branch to the FCC, recommends that the FCC deny China Mobile’s Section 214 license request.
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