China Telecom (Americas) Corp. said it intends to continue most of its U.S. operations despite an order from regulators to stop due to espionage concerns.
China Telecom said in a filing that its business-focused telecommunications operations in the U.S. aren’t common-carrier services as the Federal Communications Commission categorized them so the agency’s order doesn’t affect those services.
China Telecom’s argument is “a classic case of law-fare, where China’s government is using the American legal system against itself,” said Martijn Rasser, director of the Technology and National Security Program at the Washington-based Center for a New American Security.
“That’s an intriguing ploy, but I don’t see that working,” Rasser said in an interview.
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