Recently the US Senate has approved the next bipartisan initiative against China. This is not a new objective, which is to push Chinese business rivals out of the US telecom market.

On October 28, 2021, the US Senate unanimously passed the Secure Equipment Act. Joe Biden signed the bill, and the Federal Communications Commission (FCC) was prohibited from reviewing and approving applications for licensing telecom equipment of those Chinese makers that 'pose a national security risk'.

Now, a quick primer on the matter: in 2020, such Chinese corporations as Huawei and ZTE were blacklisted by the FCC (it was set off by the information that they were transmitting American citizens' personal data to China's government). This led to the ban on the use of federal funds (in 2020, it's over US$8 billion) for the purchase of these companies' products.

Meanwhile, restrictions did not extend to non-State funds and regional governments. As a result, China's telecom equipment continued to be widely used in the USA, particularly in rural areas. The bill is to fill the gap. As noted by the US Government sources, the aim is to clear out the US telecom networks of Chinese harmful elements. And in parallel, on October 29, 2021, the FCC opened the Secure and Trusted Communications Networks Reimbursement Program, the large-scale program, budgeted at nearly US$2 billion, to cover costs for mobile network operators in relation with replacement of Chinese components by "well-proven and reliable" ones.

The recent FCC decision to revoke China Telecom's license (it's the largest mobile operator in China) to operate its business in the USA is consistent with the US struggle and clean-up operations against Chinese telecom companies. It was based on the same threat to the US national security. According to political representatives, the company is controlled by the Chinese government, transmitting to Beijing personal data of its clients, namely, American citizens and firms.

It should be noted that the telecom subject has long been a source of unconcealed frustration of the USA, and Washington puts a consistent focus on pushing China out of this sphere.

It should be reminded that on October 19, 2020, the Swedish Post and Telecom Authority (PTS) released a document, which banned the use of telecom equipment from China's Huawei and ZTE in its 5G network. The Swedish telecom regulator said the setting of the license conditions followed assessments by the Swedish Armed Forces and Security Service. The document stated that 'new installations and new implementation of central functions for the radio use in the frequency bands must not be carried out with products from the suppliers Huawei or ZTE'. And those mobile providers who were already using equipment of these Chinese producers must phase out all Huawei and ZTE products from their networks by January 1, 2025. And in local papers, it was stated openly that 'the USA piled pressure on allies to cut Huawei and ZTE from their internet infrastructure'.

Following the pressure from the United States, European governments were, on a massive scale, reviewing the role of Chinese companies in building their networks.

It is well known that the US pressure on leaderships of some countries is aimed at removing China from its participation in international value chains. Apparently, the pressure and opposition from the USA against China will only increase. Now we should wait for China's reaction and see what response actions it'll take, and whether Beijing will do something in return.