Chinese technology firms ZTE and Huawei were locked out from its usual businesses in the United States after a Congressional investigation revealed that the two telecommunication company juggernauts allegedly posed security risks, violating national laws in the US Government.
ZTE and Huawei were accused of illegal behaviors such as ‘hardware hacking’ where the two phone-equipment makers are producing and/or distributing equipments in US where it is possible to install a malicious software to enable Chinese spying and even shut down network systems in U.S. telecommunication networks .
The US Government is yet to issue a report but the government already urged companies in US to avoid equipments from the said companies citing concerns about the alleged hardware hacking and Chinese espionage.
Huawei and ZTE both released a separate official statements showing disappointments to the US Committee pointing out that after years-long evaluation and inquiry with them, the committee failed to arrive at an objective, fact-based outcome. A part of statement from the two companies is given below.
The report released by the Committee today employs many rumors and speculations to prove non-existent accusations. This report does not address the challenges faced by the ICT industry. Almost every ICT firm is conducting R&D, software coding and production activities globally; they share the same supply chain, and the challenges on network security is beyond a company or a country. The Committee’s report completely ignored this fact. We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese ICT companies from entering the US market… read more
It is noteworthy that, after a year-long investigation, the Committee rests its conclusions on a finding that ZTE may not be ‘free of state influence.’ This finding would apply to any company operating in China. The Committee has not challenged ZTE’s fitness to serve the US market based on any pattern of unethical or illegal behavior… read more
Meanwhile an interview at Bloomberg west with author of “The Coming Collapse of China”, Gordon Change discussed the alleged espionage of tech firms.
Last modified: October 10, 2012