ZTE and Huawei should be kept out of US, says Congress

In June, it was revealed that the US government was investigating two Chinese-based smartphone and tablet companies, ZTE and Huawei, who want to expand their operations in the US. Today, the U.S. House of Representatives' Intelligence Committee is expected to release a report recommending that the two companies be kept out of the US market.

A story via Retures states that the report will show that the investigation has received "credible allegations" from unnamed sources that the two companies, and Huawei in particular, may have received subsidies from the Chinese government. The report will say that both 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."

A spokesperson for Huawei denied the report's findings, calling them "baseless suggestions". A spokesperson for ZTE said it also "profoundly disagrees" with the report's claims.

Huawei is one of the four hardware partners for Microsoft's Windows Phone 8 operating system, which will launch later this year. ZTE is already selling one of its Windows Phone 7.5 smartphones in the US and plans to launch a Windows 8-based tablet, the V98, sometime in the first quarter of 2013.

Source: Reuters | Image via US Cellular

Report a problem with article
Previous Story

Google expanding on YouTube original content

Next Story

Megaupload data might be released to owners

35 Comments

Commenting is disabled on this article.

wao imagine if other countries decided that monsanto pose a security threat because of its powers over food and agricultural activities....

eilegz said,
wao imagine if other countries decided that monsanto pose a security threat because of its powers over food and agricultural activities....

And that would be news exactly *why*?

How many countries are there where Monsanto does not do business for exactly that reason?

Huawei a couple years ago was investigated by the NSA after they low bid a national security radio network contract, something happened that caused the NSA to recommend them not to use them as a contractor to the congress before the vote... obviously the NSA found something in one of their sample devices they didn't like... since they where doing real testing on the devices and tearing them down, checking the firmwares, etc...

The House Intelligence Committee is basically our national Conspiracy Committee in its current form, so ... yeah.

What I find funny is both ZTE and Huawei use components from US based companies such as Qualcomm.

Side note: One could legitimately argue that the agricultural subsidies of Europe and America undermine the national security of those countries that import food - the countries become so dependent on importing food and their local producers are run down that the result is ones national security is undermined by ones sovereignty undermined too (that sovereignty is made possible because a country can sustain itself).

What about the core servers controlling the internet being controlled by the US government? I trust them as little as I do China, the US refused to hand over the running of it to the UN.

thealexweb said,
What about the core servers controlling the internet being controlled by the US government? I trust them as little as I do China, the US refused to hand over the running of it to the UN.

If you think the UN is any less.... Oh I guess you do

Cyborg_X said,

If you think the UN is any less.... Oh I guess you do

The UN isn't perfect but no one country have its own way completely.

thealexweb said,
What about the core servers controlling the internet being controlled by the US government? I trust them as little as I do China, the US refused to hand over the running of it to the UN.

Are you aware of how many members of the UN censor their internet? While I would prefer no government to have control over the DNS servers I would also not want countries like China or North Korea having any say about it. I also find it troubling that would trust a government that actively censors their internet just as much as the United States.

contriver87 said,

Are you aware of how many members of the UN censor their internet? While I would prefer no government to have control over the DNS servers I would also not want countries like China or North Korea having any say about it. I also find it troubling that would trust a government that actively censors their internet just as much as the United States.

The west block piracy sites and asia blocks political sites, no one is innocent.

thealexweb said,

The west block piracy sites and asia blocks political sites, no one is innocent.

This is not really correct. The United States takes down servers within their borders that violate the law while China censors any site, even if it isn't located in the country. These are completely different things and every country does the former while only select countries do the latter.

You lot should get out more often and "smell the roses". China is the number one country in the world as far as "internet espionage" is concerned. It was shown on Australian TV not so long ago that a whole building did nothing all day except try and hack overseas computers.

Caveman-ugh said,
You lot should get out more often and "smell the roses". China is the number one country in the world as far as "internet espionage" is concerned. It was shown on Australian TV not so long ago that a whole building did nothing all day except try and hack overseas computers.

and like the US doesn't do that too ?

What are the Chinese manufacturers gonna do? Terrorize the cellphone networks with useless spammy texts? The whole population pollutes the airwaves with "wut u u2 gurl? ima gt wsties 2nt hur hur"

Sure dont use them for sensitive applications but to not allow them into the country? dafuq?

Auzeras said,
What are the Chinese manufacturers gonna do?

At a guess, firmware in their products could have backdoors added, or even the chip designs themselves could have extra circuits added that enable spying.

Once the device is in the market, how do you stop people in sensitive jobs from purchasing them for personal use. Then their email, browser history, passwords, phone calls to friends / co-workers could all be vulnerable.

Edited by jeff_pony, Oct 8 2012, 8:24pm :

jeff_pony said,

At a guess, firmware in their products could have backdoors added, or even the chip designs themselves could have extra circuits added that enable spying.

Once the device is in the market, how do you stop people in sensitive jobs from purchasing them for personal use. Then their email, browser history, passwords, phone calls to friends / co-workers could all be vulnerable.

Indeed it's a possibility but if you are concerned with such things just buy another brand. I fully understand for this reason not allowing Huawei into NZ to install out Fibre system but banning handset sales to the general public? Seems silly

Our domestic companies can't compete with Chinese cheap labor anyway, let put on our trade war hats!

LAMj said,
Our domestic companies can't compete with Chinese cheap labor anyway, let put on our trade war hats!

Asia is where most of the raw materials are extracted (atm at least) and where the products is made, the west has the software but that's so easy to steal The west would suffer more from a trade war.

Say what?

" ... cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."

Couldn't come up with anything more stupid? Intelligence Committee my ***.

alwaysonacoffebreak said,
Say what?

" ... cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."

Couldn't come up with anything more stupid? Intelligence Committee my ***.


That is a stupid reasoning by the US, by the same logic, the Chinese can kick AIG, the largest reinsurer out of business if they stop using it over a local.

alwaysonacoffebreak said,
Say what?

" ... cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."

Couldn't come up with anything more stupid? Intelligence Committee my ***.

Lol it's like saying because the Chinese Government is encouraging business by ZTE and Huawei by paying them with subsidies, all of a sudden they pose a national security threat and their products should be kept out of the country. Makes no sense at all!

Uh, the current owner of Huawei is a former Chinese People's Liberation Army officer.

It's not like they're just taking financial subsidies. They are for all intents and purposes an arm of the Chinese government, embedded heavily in their interests.

ascendant123 said,
Uh, the current owner of Huawei is a former Chinese People's Liberation Army officer.

It's not like they're just taking financial subsidies. They are for all intents and purposes an arm of the Chinese government, embedded heavily in their interests.

Yeah because ZTE and Huawei have access to internal US documents that China would actually find useful as from any point of view. /s

alwaysonacoffebreak said,

Yeah because ZTE and Huawei have access to internal US documents that China would actually find useful as from any point of view. /s

Are you trying to imply that the US has nothing China would want?

Read up on some history of Huawei versus Cisco; Huawei had people inside Cisco literally stealing the source. If Huawei and ZTE kit were sitting at the core of the US internet infrastructure they wouldn't need to resort to HUMINT or corporate espionage, they would have direct access.

How is that good for anyone?

WaqasTariq said,

That is a stupid reasoning by the US, by the same logic, the Chinese can kick AIG, the largest reinsurer out of business if they stop using it over a local.

Indeed they can - after all, it IS their country.