Subcontractors sue China Mobile

Subcontractors have sued China Mobile International for allegedly failing to pay for work on a data center in San Jose.

The companies claim more than $10 million in unpaid bills for the 312,200 square-foot facility, which appears to be closed after US authorities blocked the Chinese telecoms company’s operations in the country.

In lawsuits first reported by The Mercury News, Rosendin Electric said that it was out $7.5 million for electrical work, Southland Industries said it was owed $2.7m for numerous tasks, Sunsteel said it was missing $1m, and Alcal Glass Systems said it was owed $113,000.

China Mobile was denied an application by the Federal Communications Commission (FCC) to provide telecoms services in the US back in 2019.

The next year, then-President Donald Trump signed an executive order blocking US companies and citizens from owning shares in businesses the military said had links to the Chinese army. This included China Mobile.

Then, in March this year, the FCC added China Mobile International USA to a list of telecoms and service providers that are a national security threat. The company has denied the allegation. Data Center Dynamics