A congressional report released Oct. 8, alleging that China’s two largest telecom equipment manufacturers, Huawei Technologies and ZTE, are a security threat and should be blocked from acquiring U.S. companies. “Based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems,” says a draft of the report from the House Intelligence Committee’s chairman, Michigan Republican Mike Rogers, and Maryland Democrat C.A. “Dutch” Ruppersberger.
In addition, evidence of illegal activity by Huawei, including bribery and corruption and immigration violations, was unearthed, and will be referred to the departments of Homeland Security and Justice, according to the report that was one year in the making; both Chinese companies testified before the committee. The report also criticized them for not providing detailed information about their relationship with Chinese authorities. “Private-sector entities in the United States are strongly encouraged to consider the long-term security risks associated with doing business with either ZTE or Huawei for equipment or services,” the report says.