China Telecom will lose its licence within 60 days as a result of the decision but China has urged a reversal of the move.
In April 2020, the US government said that China Telecom had targeted its mobile virtual network at more than four million Chinese Americans, two million Chinese tourists a year visiting the US and more than 1,500 Chinese businesses in America.
The US Federal Communications Commission (FCC) voted on the decision to ban China Telecom last month, citing national security concerns.
But the Ministry of Industry Information and Technology has hit back, releasing a statement that said: "In recent years, the United States has repeatedly sanctioned Chinese companies on the grounds of national security and disregarding facts.”
"This is an unreasonable suppression of Chinese enterprises by abuse of state power and a serious breach of international economic and trade rules," the Chinese regulator added.
China Telecom has also hit back at the decision, telling newspaper China Daily that it had followed compliance protocols in all its markets including the US, adding that there was no justification for the decision.
