U.S. report blasts Chinese companies as security threats

The suspicions are not new, but a new draft report released today by the U.S. House of Representatives’ Intelligence Committee undermines the U.S. business dealings of Huawei Technologies and ZTE, two top Chinese tech companies that the committee says are a threat to American security.

After an 11-month investigation, the committee found the companies’ ties to the Chinese government to be a potential espionage threat, especially because of what it says is the companies’ lack of transparency. It also accuses Huawei — the world’s second-largest maker of telecom gear — of bribery and potential violations of U.S. copyright and immigration laws, according to Politico. It will reportedly refer those allegations to U.S. government authorities. The committee warns American companies against using switches, routers and other telecom equipment from Huawei and ZTE.

The Merc’s John Boudreau wrote a profile of Huawei and its multi-national ambitions last year, in which he mentions its rivalry with San Jose-based Cisco Systems. Cisco had a sales partnership with ZTE to combat Huawei. But Cisco has cut ties with ZTE after an internal investigation into allegations that ZTE sold Cisco networking equipment to Iran, Reuters reports.

Huawei and ZTE are defending themselves against the accusations, with a Huawei spokesman saying that “purporting that Huawei is somehow uniquely vulnerable to cyber-mischief ignores technical and commercial realities.”

The report comes amid heightened concerns about U.S. cybersecurity and Chinese spying, and on the heels of a Wall Street Journal report last week that Huawei was considering going public. GMSV has mentioned persistent suspicions about Huawei over the past year, which has come from the United States, Australia and elsewhere. (See Doom and gloom: on hackers, China and cyberwar and Feeling insecure: Nations wary of Huawei…)



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  • dermbuilder

    Really the U.S. would be a lot better off if we bought a lot less products from China.

  • S L

    what happened to digital networking? or something like that, Huawei and ZTE were at the forefront of that 6 years ago as publicized by Businessweek then