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House Intelligence Committee: Don't Use ZTE, Huawei Gear
Huawei: You're Just Afraid of Competition
by Karl Bode 09:43AM Tuesday Oct 09 2012
The U.S. House of Representatives Intelligence Committee issued a report this week stating that companies should not do business with Chinese network equipment vendors Huawei and ZTE because potential Chinese government influence on the companies poses a security threat. Reuters notes the report comes after an eleven month investigation into the companies. Both companies have been planning significant expansion into the States, including into the smartphone market.

"We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese (telecom) companies from entering the U.S. market," Huawei said in a statement. ZTE took things one step further, issuing a sarcastic statement suggesting that the United States should ban all hardware made in China entirely if they really want to feel secure:
Given ZTE’s cooperation and the facts ZTE has presented to the Committee, ZTE is disappointed that the Committee chose to narrowly focus its review on just the two largest Chinese companies and to exclude Western telecom vendors and their Chinese joint venture partners. Given that virtually all US telecom equipment is produced in China, in some measure, the Committee’s narrow focus addresses the overall issue of risk to US telecom infrastructure so narrowly that it omits from the Committee’s inquiry the suppliers of the vast majority of equipment used in the US market. ZTE is a relatively small US telecom infrastructure equipment supplier in comparison with most of the Western vendors. Sales of ZTE’s telecom infrastructure equipment in the US comprised less than $30 million in revenue last year. Two Western vendors, alone, last year provided the US market with $14 billion worth of equipment.
The full report, which you'd have to assume will include actual proof of spying allegations, will be released later today.

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Waterford, MI

2 recommendations

reply to fifty nine

Re: Frightening

said by fifty nine:

There's really no escape. Since we don't build anything here anymore ...

Bottom line, right there.

Until and unless the U.S. consumer (that incl. the government) is willing to pay the price of bringing manufacturing back to the U.S., we will be at the mercy of the governments of every one of these cheap labour countries.


Americans want to eat their cake and have it, too, as we did for decades. Those days are gone. We exported our technology and labour, and now the countries to which we did that a coming into their own. Now they're going to use what we so cavalierly gave away, and there's every reason to expect they'll use that to their advantage--just as we would were we in their position.



Glen Head, NY

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reply to Angrychair
said by Angrychair:

The humorous part is that the American government does exactly what they're accusing the Chinese government of doing - intercepting everything and allowing nothing to be private communication. I'm sure it's not a good idea for American interests to use Chinese gear that would spy on them, but for a small potato such as myself I'm not sure I see where it would matter for me.

But it is okay for us to do it because we are the good guys and our motives are altruistic (SARCASM).

I read all 47 or so pages (skipped the footnotes) and while it paints a pretty scary picture, I do not see anything going on that we are not doing in conjunction with our Homeland Security Department and the NSA. It isn't much different than the secret rooms set up at various telco's to feed all data directly to the U.S. government.
I support the right to keep and arm bears.