Appeals court rejects China Telecom bid to reverse U.S. ban, Reuters, Dec 20, 2022.

David Shepardson

A federal appeals court on Tuesday rejected China Telecom Corp's (0728.HK) challenge to a Federal Communications Commission order withdrawing the company's authority to provide services in the United States.

A three-judge panel of the U.S. Court of Appeals for the District of Columbia rejected the bid by the U.S. arm of China Telecom to reverse the order that took effect in January. The FCC said in 2021 that China Telecom (Americas) "is subject to exploitation, influence and control by the Chinese government."

A lawyer for China Telecom (Americas) did not immediately comment. The appeals court panel did not immediately make its opinion public.

FCC Chairwoman Jessica Rosenworcel on Tuesday praised the ruling upholding the unanimous commission decision she said "was based on the recommendation of national security agencies that found that China Telecom's operations in the U.S. provided opportunities for increased Chinese state-sponsored cyber activities, including economic espionage and the disruption and misrouting of U.S. communications traffic."