Chinese state-owned telecommunications company China Mobile will most likely not be allowed to operate on the territory of the United States. China Mobile first applied for permission to join the US market in 2011 and has been waiting on a decision ever since. It is the biggest telecommunication company in the world with almost 900 million users.
However, at present the trade relations between China and the United States are at an all-time low. Ever since Donald Trump decided to pick a fight with China’s trade, the two countries have been serving each other with new rounds of tariffs back and forth. The latest set of fees on $34 billion of Chinese goods will come into effect this Friday. It is expected that China will return the “favor” with fees of its own very soon.
Even though the possible refusal of admission of China Mobile to the American telecommunications market is stated be for security reasons, one can hardly doubt that the trade war is the main reason for it. The United States are trying to leverage everything they have against China, which includes closing down their markets. Analysts estimate that the ban will barely have any negative impact on China, because the company relies first and foremost on the Chinese market, which they continue to dominate.
