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US Lawmakers Demand Chinese Telecoms Detail Ties to Military and Government

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The leaders of a U.S. House of Representatives panel have urged top Chinese telecom companies to provide detailed information about any connections to the Chinese military and government, citing national security concerns over their operations in the U.S. Representatives Raja Krishnamoorthi, the top Democrat on the House Select Committee on China, and Republican John Moolenaar, the committee chair, have sent letters to China Mobile, China Telecom, and China Unicom, requesting responses by March 31.

The lawmakers expressed concerns that the companies could misuse their access to U.S. data through cloud and internet services, potentially sharing sensitive information with the Chinese government. This follows a 2024 Reuters report revealing a U.S. Commerce Department investigation into these companies’ operations in the U.S. and the potential security risks they pose.

In one letter, the committee raised alarms about China Telecom’s operations, particularly its role in internet backbone exchanges and cloud computing. The lawmakers warned that such operations could facilitate unauthorized data access, espionage, or sabotage by the Chinese government. They also highlighted the companies’ documented connections to Chinese intelligence, intensifying national security concerns amid China’s increasing cyber-attacks on U.S. telecommunications infrastructure.

The letters reflect growing bipartisan concern over Chinese telecom firms’ U.S. presence, especially after significant cyber-attacks tied to Chinese state-backed groups. Two prominent cyber incidents—Salt Typhoon and Volt Typhoon—have been linked to Chinese government entities, with the latter described by the FBI as the largest cyber-espionage campaign in U.S. history. Beijing has denied any involvement in these attacks.

China Telecom, China Mobile, and China Unicom have long been under scrutiny in Washington. The Federal Communications Commission (FCC) denied China Mobile’s application to offer U.S. telecom services in 2019 and revoked China Telecom and China Unicom’s authorizations in 2021 and 2022. In 2024, the FCC moved to bar these companies from offering broadband services, but the decision was blocked by a court. Despite these regulatory actions, the companies still retain the ability to provide cloud services and handle U.S. internet traffic, thus maintaining access to Americans’ data.

Chinese Companies Embrace DeepSeek’s AI Amid Growing Frenzy

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Chinese companies, including Great Wall Motor and major telecom providers, are quickly integrating the AI model released by DeepSeek, capitalizing on its attention and breakthroughs. Great Wall Motor, China’s first listed automaker, confirmed that it had embedded DeepSeek’s AI into its connected vehicle system, branded “Coffee Intelligence.” This integration marks a significant shift as the company seeks to enhance its technological offerings.

Meanwhile, China’s Ministry of Industry and Information Technology (MIIT) announced that the country’s three largest telecom operators—China Mobile, China Unicom, and China Telecom—are collaborating with DeepSeek to promote the inclusive application of AI technology. This move is part of a larger trend as companies rush to incorporate the model into their products.

DeepSeek’s AI platform has sparked investor interest, fueling speculation about its disruptive potential across China’s tech sector. Stocks of Chinese companies tied to AI, including chipmakers, software developers, and data center operators, have surged in response to this new development. Capitalonline Data Service and MeiG Smart Technology, two listed companies, experienced significant stock price jumps after announcing their integration of DeepSeek’s AI. However, both firms have cautioned investors, stating that the impact on their future business performance remains uncertain.

Other industry giants like Tencent and Huawei have also joined the wave, revealing they have integrated DeepSeek’s model into their own offerings. The rapid adoption highlights the growing impact of DeepSeek’s AI on China’s tech landscape.