July 3 (UPI) -- Concerns about national security prompted the Trump administration to recommend preventing China Mobile from entering the U.S. telecommunications market.
The National Telecommunications and Information Administration, or NTIA, on Tuesday said the risks are too great to come to an agreement with the Chinese company.
"After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved," said David Redl, assistant secretary for communications and information at the NTIA.
As a result, the NTIA advised the Federal Communications Commission to deny China Mobile's 2011 application to provide services from within the United States.
Last month, the Chinese smartphone maker ZTE said it will pay the $1.4 billion penalty levied by the U.S. government, just weeks after the U.S. ordered American firms to stop doing business with ZTE. U.S. officials said the company violated U.S. sanctions against exporting to Iran and North Korea.
ZTE said it will make a lump sum payment of $1 billion as part of a settlement agreement with the United States. The other $400 million will be put in escrow. ZTE will also replace its board of directors and create a compliance committee.
President Donald Trump's administration has attempted to lift the sanctions, but the U.S. Senate scuttled that effort.
A bipartisan amendment was added to the National Defense Authorization Act to reinstitute the penalties against ZTE.