US moves to boost crackdown on China Telecom’s US unit, source says

WASHINGTON (Reuters) – The U.S. Commerce Department is moving to further crackdown on China Telecom (NYSE:)’s U.S. unit from over concerns it could exploit access to American data through their U.S. cloud and internet businesses by providing it to Beijing, a source told Reuters.

The source confirmed a New York Times (NYSE:) report that the department last week sent China Telecom (BCBA:) Americas a preliminary determination that its presence in U.S. networks and cloud services poses U.S. national security risks and gave the company 30 days to respond.