<div id="readability-page-1">The latest US restrictions on Chinese telecoms operators could ultimately force them out of the American market, analysts said, marking an escalation in Washington’s multi-year crackdown on Chinese technology. The US Federal Communications Commission (FCC) said on Thursday that it was considering broader measures to bar Chinese telecom carriers from operating data centres in its territory, further restricting Chinese telecoms carriers’ access to US networks and infrastructure. China Mobile, China Telecom and China Unicom – all on the Covered List of entities deemed to pose national security risks – could be affected, depsite limited financial impact, analyts said. The US telecommunications regulator said on Thursday that it was considering broader measures to bar Chinese telecom carriers from operating data centres in its territory and further restrict their access to US networks and infrastructure. China Mobile, China Telecom and China Unicom – all on the Covered List of entities deemed to pose national security risks – could be affected. Under the proposal, US carriers would also be barred from interconnecting with those companies, citing “significant national security concerns” around such links, the FCC said in the draft. “The proposal marks an escalation in the FCC’s restrictions, from banning Chinese firms from directly providing services to the public and limiting their hardware, towards deeper controls over underlying internet infrastructure and interconnection protocols,” said Harry Wang Yuxiang, a partner at Tahota Law Firm, who is qualified in China, the UK and California. The three Chinese operators did not immediately respond to requests for comment on Friday. The agency has tightened its grip on Chinese carriers in recent years, deepening the technology decoupling between the world’s two largest economies. Affiliates and subsidiaries of the Chinese companies would also be prohibited from data centre operations or connecting with other US carriers, as the new proposal would extend restrictions to such entities, which were not covered previously. If implemented, the proposal could effectively force a full withdrawal, Wang said, with Chinese companies likely required to sell, transfer or shut down their US-based data centres and network nodes, losing the ability to route or process data within the country. It could also subject US companies connected to those networks to regulatory scrutiny and required adjustments. This move underscored a shift in the FCC’s regulatory approach, “from default acceptance with targeted enforcement to system-wide exclusion, with limited licence-based exceptions, on the legal premise of national security designation”, said Arthur Chiu, a US lawyer and associate professor at the University of International Business and Economics Law School. The FCC had historically been guided by a deregulatory telecoms framework, under which “blanket domestic Section 214 authority” allowed carriers – and their chosen partners – to provide interstate telecommunications services by default without prior approval, in a bid to promote competition, Chiu said. Morningstar’s senior equity analyst Dan Baker played down the potential financial impact of the proposed ban, noting that the three operators generated most of their revenue domestically. China Mobile reported 2025 revenue of 1.05 trillion yuan (US$154 billion), up 0.9 per cent year on year, with international business accounting for only 2.7 per cent. China Telecom posted a 0.1 per cent increase in revenue to 529.6 billion yuan, with 3.7 per cent from overseas markets. China Unicom reported revenue of 392.2 billion yuan, up 0.7 per cent, with international business making up 3.4 per cent. The companies do not break out overseas markets in detail. Growth has slowed across all three as traditional telecoms services weaken, pushing them to step up investment in computing infrastructure and related businesses. The FCC said it would take a preliminary vote on the proposal at an April 30 meeting. If approved, the measure would enter a public comment period before a final vote. It dealt a blow in December to the three Chinese carriers in an effort to clamp down on robocalls, warning them to correct the violations or face disconnection from US networks. That move came after it revoked operation authorisation for China Unicom’s US subsidiary in 2021 and China Telecom Americas in 2022. It also turned down a bid by China Mobile, the world’s largest mobile operator by subscribers, to provide services in the US. The agency under the Trump Administration has also sought to expand its clampdown on Chinese tech outside traditional telecoms equipment makers and carriers, launching a campaign to target Chinese drones and consumer internet routers. Chiu pointed out that, in legal and policy terms, the FCC proposal mirrored a broader approach already adopted by other government agencies in areas such as export controls and investment screening. Additional reporting by Ben Jiang </div>

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<p>The US Federal Communications Commission (FCC) is considering new restrictions that could force Chinese telecom operators, including China Mobile, China Telecom, and China Unicom, out of the American market. The proposed measures aim to bar these companies from operating data centers in the US, citing national security concerns. If implemented, the restrictions would extend to affiliates and subsidiaries, potentially requiring Chinese firms to sell or shut down their US operations. Analysts suggest the financial impact may be limited, as most revenue for these companies comes from domestic operations. A preliminary vote on the proposal is scheduled for April 30.</p>

China telecoms face US exit risk as FCC deepens crackdown on data centres