House Committee Slams Chinese Telecom CompaniesReport finds Huawei and ZTE were not sufficiently open and transparet, charge they dispute 10/08/2012 08:31:04 PM Eastern
Following an almost year-long investigation, the The House Permanent Select
Committee on Intelligence has
recommended that telecom providers steer clear of Chinese-based global tech
companies Huawei and ZTE.
In a report released Monday, the
committee said the companies did not sufficiently cooperate with the
investigation into the national security threat of Chinese telecom
companies -- Huawei and ZTE are the top two -- doing business in the U.S.
During the recent congressional debates over cybersecurity,
one issue both agreed on was that the country needed to better track the
foreign-made telecom-related hardware and software in critical U.S.
The committee report concluded that Huawei and ZTE
"failed to provide evidence that would satisfy any fair and full
investigation," the report said, leading the committee to conclude that the
government should be suspicious of continued Chinese penetration of the U.S.
telecom market, that the government block any potential mergers between U.S.
companies and the Chinese companies, that U.S. government systems not use
Huawei or ZTE equipment or parts, and that private sector companies consider
the long-term security risks of doing business with them, and that "potential
legislation to better address the risk posed by telecommunications companies
with nation-state ties or otherwise not clearly trusted to build critical
infrastructure. Such legislation could include increasing information
sharing among private sector entities..."
That info sharing was a key element in cybersecurity
legislation that failed to pass in Congress this session.
"ZTE has presented the Committee with ample facts that
demonstrate ZTE is China's
most transparent, independent, globally focused, publicly traded telecom
company, ZTE said in a statement.
States is a country ruled by law,
where all charges and allegations should be based on solid evidence and facts,"
said Huawei in response to the report. "The report conducted by the House
Permanent Select Committee on Intelligence (the Committee), which took 11
months to complete, failed to provide clear information or evidence to
substantiate the legitimacy of the Committee's concerns."
member Rep. Adam Schiff (D-Calif.) said as far as he was concerned it was
too risky to do business with the companies.
a time when Chinese collection intelligence efforts against the United States are significant and
Chinese theft of American trade secrets is rampant, handing critical
telecommunications infrastructure to Huawei and ZTE poses too great a threat to
our security and economy," he said.