US investigates Huawei, ZTE over spying concerns

Published on June 20, 2012 by connie | This story has been viewed 515 views

Shenzhen, China- US congressmen earlier informed Huawei and ZTE, two China-based global leading telecommunication companies acting actively in US market, asking them to provided details about their relationships with Chinese government, since they were investigating China over the spying concerns.

In the correspondence sent to Huawei and ZTE on Tuesday, two lawmakers from the US House Intelligence Committee stated their concerns about the ties with the government, including there being a “Party Committee” representing the government. The relationships between Huawei and another five US consulting companies, including International Business Machines Corp, Accenture PLC and PricewaterhouseCoopers LLP, are also questioned and relevant documents are required to be provided, including contracts and the consultation work made for Huawei.

Additionally, the letter also questioned Huawei and ZTE’s work in Iran as well as the financing arrangement with Chinese government.

The congressmen stated that the committee is “concerned” the Chinese government is hacking into the country’s networks via its telecom intermediaries.

Both Chinese firms said their interaction with the Chinese government is typical of regulated companies in China. Huawei said that it is beginning to review questions posed by lawmakers, while ZTE stated that it is committed to “remaining transparent, candid, and cooperative” throughout the inquiry.

Shenzhen Post Elaine contributes to the story.

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