U.S. Officials Warn That Huawei and ZTE May Pose Security Threats

By Karla Robinson
November 1, 2012

U.S. military and intelligence officials have expressed concerns that certain Chinese tech companies could be used for cyber espionage, claims that have mostly stayed under wraps in an effort to maintain foreign relations. A congressional investigation has concluded that telecommunications firm Huawei Technologies Inc. and ZTE are dangerous to the U.S.
“In a report to be released [October 8], the [House intelligence] committee recommends that the U.S. block acquisitions or mergers involving the two companies through the Committee on Foreign Investments in the U.S.,” reports the Wall Street Journal. “It also recommends that the U.S. government avoid using equipment from the firms, and that U.S. companies seek alternative vendors for telecommunications equipment.”
Both companies have worked to allay U.S. concerns with transparency, responding to information requests. The report rebuts these efforts.
“Neither company was willing to provide sufficient evidence to ameliorate the committee’s concerns,” said a draft of the committee’s report. “The risks associated with Huawei’s and ZTE’s provisions of equipment to U.S. critical infrastructure could undermine core U.S. national security interests.”
ZTE is a publicly traded company, with 15.68 percent of the company owned by state enterprises. ZTE denies that it would allow the Chinese government to use its equipment for surveillance, “saying it wouldn’t be in [its] business interests to do so,” notes WSJ.
The article also notes that company spokesman William Plummer claims Huawei is “independent of the Chinese government and that security of its systems remains a top priority.”
Plummer says the U.S. claim “ignores technical and commercial realities, recklessly threatens American jobs and innovation, does nothing to protect national security.”

U.S. Officials Warn That Huawei and ZTE May Pose Security Threats

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