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10-09-12, 08:30 AM
http://cdn.arstechnica.net/wp-content/uploads/2012/10/5394903795_c4ecd7dde2_z-640x427.jpeg ZTE is one of two companies Congress isn't very happy with today.
Pierre Lecourt (http://www.flickr.com/photos/13815526@N02/5394903795/)


Huawei and ZTE are two giant┬*Chinese tech┬*companies frequently┬*targeted┬*by accusations of industrial espionage, intellectual property theft, and even providing backdoors for network attacks to the Chinese military. Now, the two are the focus of a House Permanent Select Committee on Intelligence report (http://intelligence.house.gov/sites/intelligence.house.gov/files/documents/Huawei-ZTE%20Investigative%20Report%20(FINAL).pdf) issued today. The report finds that the two companies "cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."

Huawei is a $32 billion networking and data center infrastructure company; ZTE provides both telecommunications infrastructure and cellular handsets. Both have been frequently accused of having close ties to the Chinese government and to the People's Liberation Army (China's military).

Those connections got Huawei banned from bidding on Australia's national broadband effort (http://arstechnica.com/business/2012/03/australia-blocks-chinese-owned-huawei-from-bidding-on-national-broadband-plan/). Now, members of the House Permanent Select Committee on Intelligence are calling for the White House and the rest of Congress to take action. The committee wants to place broad-ranging restrictions on the activities of the companies because of the potential threat their hardware could pose if it was used for "cyber-espionage" or attacks on infrastructure. They're urging US telecommunications companies and other network providers to avoid the two companies and "seek other vendors for their projects."

Read 18 remaining paragraphs (http://arstechnica.com/tech-policy/2012/10/congress-accuses-chinese-tech-giants-of-un-american-activities/) | Comments (http://arstechnica.com/tech-policy/2012/10/congress-accuses-chinese-tech-giants-of-un-american-activities/?comments=1#comments-bar)



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