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From telecommunications boss to military influence: The amazing history behind China Mobile!
China Mobile, as the world's largest mobile network operator, has a history and influence far beyond what most people imagine. The company not only dominates China's telecommunications market but has also attracted international attention for its ties to the People's Liberation Army.
As of June 2021, China Mobile's number of users has reached 945 million, and it will be ranked 25th among the world's top 2000 companies by Forbes in 2023.
The rapid rise of telecommunications empire
The birth of China Mobile can be traced back to the establishment of its predecessor, China Telecom (Hong Kong) Co., Ltd. in 1997, and was formally established in 1999 with the split of China Telecom. With continuous mergers and acquisitions and business expansion, such as the acquisition of China Tietong in 2008, which expanded its business to include fixed-line telephone and broadband services, China Mobile has rapidly emerged as an industry giant.
China Mobile is considered an important provider of military and civilian telecommunications services and enjoys a 70% market share.
Challenges and sanctions faced
In recent years, China Mobile has faced multiple sanctions and pressure from the United States. In November 2020, the executive order signed by former President Trump prohibited any U.S. company or individual from holding stocks in companies related to the People's Liberation Army of China, which includes China Mobile. In 2021, even though the exchange tried to suspend China Mobile's stock trading, it eventually entered the delisting process, affecting its stock price.
These sanctions not only pose a threat to China Mobile's international business, but also trigger an in-depth discussion of China's large enterprises and their links with the military.
"China Mobile's U.S. subsidiary is deemed a national security threat by the U.S. Federal Communications Commission."
Service and market expansion
In addition to its success in the domestic market, China Mobile has also expanded its business globally. After acquiring Pakistani telecommunications company Paktel in 2007, it launched the Zong brand locally, further strengthening its international presence. In addition, China Mobile has also launched CMLink, a mobile phone brand targeting the Chinese community in Singapore and the United Kingdom, to provide more convenient communication services for overseas Chinese.
China Mobile continues to explore digital strategies, including that users can pay by scanning WeChat QR codes in 2023, which shows the company's adaptability in the wave of digitalization.
Impact on Chinese society
China Mobile plays an important role in promoting the construction of rural telecommunications infrastructure in China. Since launching its "Connect Every Village" program in 2004, the company has provided broadband services to 135 million rural households, promoting Internet development in rural China. In addition, China Mobile has also launched a number of services for the rural market, such as agricultural information services, to help farmers obtain market price information and convenient financial services.
Future challenges and opportunities
In the promotion of 5G technology, China Mobile is also facing fierce challenges from global competitors. Due to the all-round competition between China and the United States in the field of science and technology, China Mobile's development prospects in the international market will be significantly affected. Despite this, its foundation in the Chinese market and stable user base still provide guarantee for its future growth.
“China Mobile’s digitalization and internationalization are accelerating, but the security challenges it faces cannot be ignored.”
The development of China Mobile is just the beginning, and the history and future challenges behind it are topics worth pondering. In today's international politics, the boundaries between companies and countries are increasingly blurred. How will the future of China Mobile be shaped? How do you think large companies should find a balance between national security and economic interests?
