U.S. panel report fallout: China warning, all eyes on Huawei

Quick links to follow up on news about the House of Representatives Intelligence Committee’s report earlier this week, which blasts two top Chinese tech firms as security threats to the United States because of what the panel says are their ties to China’s government:

• First, and not surprisingly, China has warned that the report could harm its already strained relationship with the United States.

“[The report] is merely based on subjective conjecture and untrue foundations, and made groundless accusations against China,” said Shen Danyang, China’s commerce ministry spokesman, according to the Wall Street Journal.

• Reports about suspicious behavior are coming in about telecom gear maker Huawei Technologies, writes Reuters, which quotes an unnamed committee staffer who said the panel would continue follow up on new leads.

If the allegations are true, what kind of risks might the companies pose, anyway? ReadWriteWeb talks to a security firm executive who says the risks range from remote access to servers to sending information back to China.

• Meanwhile, Canada is reportedly moving to block certain companies — most likely, Huawei — from working on a project to build a secure communications network. The nation is invoking a national security exception.

• The Wall Street Journal also has an interesting piece about Huawei’s relationship with a huge U.S. company: IBM. According to the WSJ report, Huawei executives say “we could not have had the Huawei of today” without the guidance — including management techniques and technology — of IBM. The piece also mentions Huawei’s relationships with many other American businesses.


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  • sd

    It’s a cautionary tale of what happens when a country outsources critical manufacturing functions to another country which isn’t necessarily an ally. And it extends way beyond telecom, to aircraft, weaponry, etc. Especially when the country which benefits primarily from this outsourcing has demonstrated a long-time disregard for intellectual-property rights and human safety.

    Will telecom become a government-protected industry like military aircraft and such are now? So critical to our country’s function that it cannot be sourced outside the U.S.?