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House Intelligence Committee report blasts Huawei, ZTE as threats to U.S. national security

Ellen Messmer | Oct. 9, 2012
China-based Huawei and ZTE pose a national-security threat to the U.S. because of spying and stealing of data that could be done on behalf of the Chinese government through any network based on vendors' network service provider gear, according to an investigative report issued Monday by the U.S. House Intelligence Committee.

Huawei is known to provide equipment to Iran, but has said it plans to scale back operations there. The House Committee said Huawei refused to provide documents relating to that decision.

Huawei did apparently provide the House Committee with a list of its major customers in the U.S., said to be: Cricket Communications; Clearwire; Cox TMI Wireless; Hibernia Atlantic; Level 3/BTW Equipment; Suddenlink; Comcast; and Bend Broadband.

ZTE also took a beating in the report, with ZTE pressured by the House Committee to acknowledge that 19 individuals who serve in the Communist Party Committee are either major shareholders or on the ZTE board of directors. The House Committee said it agreed to ZTE's request to not make the names of these individuals public. But the House Committee reiterated that part of the general concern is that the exact role of the Chinese Party Committee at ZTE remains unknown. The report also says that in a meeting with House Committee staff in Shenzhen, officials admitted they were willing to lose money on projects in the U.S. to get a foothold in the U.S.

Here's a link to the full report.



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