Adds no immediate China Mobile comment, more details in paragraphs 3-7
By David Shepardson
WASHINGTON, June 17 (Reuters) - The Federal Communications Commission said on Tuesday it could fine China Mobile 600941.SS for failing to answer questions in the agency's probe to determine if its U.S. operations are seeking to evade American restrictions.
The regulator previously barred China Mobile and other Chinese companies from providing telecommunications services in the United States, citing national security concerns. The FCC said in March it was investigating nine Chinese companies including China Mobile, Huawei Technologies, ZTE 000063.SZ, Hangzhou Hikvision 002415.SZ and China Telecom 601728.SS to determine if they are seeking to evade U.S. restrictions.
The FCC citation issued to China Mobile disclosed the commission has been probing the company's U.S. operations since November 2022. In February, the FCC sent China Mobile a supplemental letter asking additional questions.
The FCC accused China Mobile of misconduct and said the company failed to provide the specific information and documentation requested.
"China Mobile's conduct throughout this matter exhibits a disregard for the Commission's authority and threatens to compromise the Commission's ability to adequately investigate," the FCC said. It gave China Mobile 30 days to answer numerous questions or face fines.
China Mobile did not immediately respond to a request for comment. The FCC said in 2019 China Mobile was indirectly owned and controlled by the Chinese government and noted a significant possibility that Beijing's influence and control could result in "computer intrusions and attacks and economic espionage."
FCC Chair Brendan Carr said in March the Chinese companies may be still operating in the United States because they do not believe the designation prohibits particular types of operations. Other companies under investigation include Hytera Communications 002583.SZ, Dahua Technology Company 002236.SZ, Pacifica Networks/ComNet and China Unicom (Americas) 0762.HK.
(Reporting by David Shepardson; Editing by Richard Chang)
((David.Shepardson@thomsonreuters.com; 2028988324))
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