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US panel: China tech giants pose security threat

October 8, 2012 • Business


FILE – In this Sept. 13, 2012, Charles Ding, Huawei Technologies Ltd’s senior vice president for the U.S., testifies on Capitol Hill in Washington, before the House Intelligence Committee as lawmakers probe whether Chinese tech giants’ expansion in the U.S. market pose a threat to national security. In a report to be released Monday, Oct. 8, 2012, the House Intelligence Committee is warning that China’s two leading technology firms pose a major security threat to the United States. The panel says regulators should block mergers and acquisitions in the U.S. by Huawei Technologies Ltd. and ZTE Corp. It also advises that U.S. government systems not include equipment from the two firms, and that private U.S. companies avoid business with them. (AP Photo/J. Scott Applewhite, File)

WASHINGTON (AP) — American companies should avoid doing business with China’s two leading technology firms because they pose a national security threat to the United States, the House Intelligence Committee is warning in a report to be issued Monday.

The panel says U.S. regulators should block mergers and acquisitions in this country by Huawei Technologies Ltd. and ZTE Corp, among the world’s leading suppliers of telecommunications gear and mobile phones.

Reflecting U.S. concern over cyber-attacks traced to China, the report also recommends that U.S. government computer systems not include any components from the two firms because that could pose an espionage risk.

“China has the means, opportunity, and motive to use telecommunications companies for malicious purposes,” the report says.

The recommendations are the result of a yearlong probe, including a congressional hearing last month in which senior Chinese executives of both companies testified, and denied posing a security threat.

A U.S. executive of one of the companies said the firm Login to read more

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