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Huawei and ZTE accused of industrial espionage and breaking UN sanctions

US Government says Chinese companies ‘cannot be trusted’

The US Congress has stated that two Chinese companies pose a security threat to the United States and its computer systems.

Huawei is a global networking and data infrastructure provider – it recently pledged to invest over £1 billion in to the forthcoming British 4G network – and ZTE specialises in communications infrastructure and phone handsets.

Both companies are now the subjects of an investigative report commissioned by the Permanent Select Committee.

Among many other things, the report accuses the two companies of consistently failing to fully explain their relationships with or of financial independence from the Chinese Government; exhibiting a pattern of disregard for intellectual property rights; failing to provide details of their involvements in Iran; and of addressing concerns over potentially illegal behaviour raised by former employees.

The report recommends that the US Government should view the continued penetration of the US economy by Chinese companies with suspicion, encourages for US companies to consider long-term security risks when dealing with Chinese companies and calls for greater transparency from Chinese companies.

The full report can be downloaded here.

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