China Mobile Calls Condemns U.S. ‘Unreasonable Pressure’
A unit of China Mobile Ltd. complained that the United States government needs to end the "unreasonable pressure" on Chinese companies and provide Chinese firms with non-discriminatory investment environment. Recently, the United States government denied the bid of the phone company to provide phone services in the world's largest economy.
The statement of the company on its website on Saturday said that Federal Communications Commission's rejection after almost eight years of applications was "without apparent reasons and basis".
The company said that it is out of market economy principles and contradicts the trend of economic globalization. On May 9, through a 5-0 vote, the FCC denied the Chinese carrier's request to enter the United States market over national security concerns. The decision was made upon the advice of the Trump Administration.
The administration of President Donald Trump is one of the most vocal critics of Chinese tech. The United States recently persuaded its allies to boycott Huawei Technologies Co. Officials of the company disputed the United States claims. The FCC is still awaiting the recommendation from the White House whether to allow Huawei to operate in the United States.
The tariff war of China and the Trump administration threatens the ambition of the Asian economic giant to dominate the globe in global technology. The United States is one of the biggest customer and source for China's makers of electronics, medical equipment, and other high-tech exports. The Trump administration, however, considers China as a threat to the industrial leadership of the United States.
Despite the drop in exports to the United States, China managed to steady its economic growth in the recent quarter. China boosted government spending and bank lending to control the effects of the trade war. There is a drop of 40 percent in the sales of Chinese technology exporters. Chinese firms suffered from the resistance of the United States and of Europe to acquire their technology.
Rajiv Biswas, the chief Asia economist for HIS Markit, said that China might now have to take the "tougher route" of developing more of its own technology, with less access to foreign partners and know-how.
The Chinese government and companies pour billions into research. Recently, Huawei, China's leading telecom company and its first global tech brand, invested $15 billion for research. The company surpassed Apple Inc. spending. The investment of the government and the companies helped the country emerge as a heavyweight in telecoms, artificial intelligence, and other fields.