Huawei and ZTE accused of posing threats to U.S.

Published on October 9, 2012 by connie | This story has been viewed 887 views

The Informational Committee of the United States House of Representatives publicized an investigation report this morning at Beijing time, saying that the United States will keep out of the two large telecommunication equipment manufacturers of China, Huawei and ZTE Communication, for the reason that the two companies have posed threats to the country’s security.

The United States has accounted for about 30% of the global communication equipment market, so the two companies will encounter unfavorable influence in future development if they are kept out.

ZTE and Huawei denied the conclusion of the report. Huawei said the report is full of rumor and fails to provide clear information which can prove that the Committee’s worries are reasonable. The nature and purpose of this report are to prevent Chinese companies to enter into the U.S. market and block competition.

Since February of 2011, the Committee has conducted investigations over Huawei and ZTE for over one year to ensure that if the two companies will pose threats to the security of the United States. On October 8, the Committee announced an investigation draft, saying that Huawei and ZTE’s equipments may be used for spying purpose and would impose threats to the security of the United States. The report also suggests the U.S. Oversea Investment Committee should prevent any merging activities involving those two companies and U.S. should avoid using their equipments.

Foreign Ministry spokesman Hong Lei said on routine press conference that he hope the United State can respect the fact of Huawei’s business issue in U.S., abandon prejudice and contribute to the commerce and trade relations between China and U.S.

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