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Chinese telecom firms pose national security threat, US committee finds

Agam Shah | Oct. 9, 2012
After a year-long investigation, a U.S. congressional committee on Monday concluded that Chinese telecommunication equipment vendors Huawei Technologies and ZTE pose a security threat to the U.S., with lawmakers advising U.S. private-sector firms to not buy networking gear from the companies.

The report is based on rumors and speculation, Huawei said.

"We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese ICT companies from entering the US market," Huawei said.

Huawei defended itself by saying it was a Fortune 500 company, and that its products were used by products in 140 countries around the world.

ZTE said its equipment is safe, and that it will work with the U.S. government and companies to ensure its products are safe.

It is noteworthy that, after a year-long investigation, the Committee rests its conclusions on a finding that ZTE may not be 'free of state influence.' This finding would apply to any company operating in China," said David Dai Shu, ZTE's director of global public affairs, in a statement.

The committee did not challenge ZTE's "fitness" to serve in the U.S. market, ZTE said.

 

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