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US Investigation Advises Firms to Avoid Dealing with Huawei and ZTE
Published on:
The USA's House Intelligence Committee has issued the long awaited report into Huawei and ZTE's activities and is has concluded by recommending that US firms avoid doing business with the Chinese suppliers.
The report also suggested that future acquisitions, takeovers, or mergers involving Huawei and ZTE should be blocked by the regulators.
Without explicitly stating that they had proof of the allegations often made against the companies that they are linked to the Chinese government and military, the report however found weaknesses in their evidence and suspicions of not following US laws, which the Committee said were being passed the required agencies for further review.
The Committee said that it found that the companies failed to provide evidence that would satisfy any fair and full investigation. Although this alone does not prove wrongdoing, it factors into the Committee's conclusions.
Additionally, the report recommends that U.S. government systems, particularly sensitive systems, exclude Huawei or ZTE equipment or component parts.
The report, released today in a Capitol Hill news conference, states that Huawei and ZTE provided incomplete, contradictory, and evasive responses to the Committee's core concerns. The report said that Huawei, in particular, must become more transparent and responsive to U.S. legal obligations.
The report also included a classified annex, which is not being published, but is said to support the Committee's findings.
Huawei, in particular the report noted had failed to provide thorough information to the Committee about its corporate structure, history, ownership, operations, financial arrangements, or management.
"We have to be certain that Chinese telecommunication companies working in the United States can be trusted with access to our critical infrastructure," Chairman Rogers said. "Any bug, beacon, or backdoor put into our critical systems could allow for a catastrophic and devastating domino effect of failures throughout our networks. As this report shows, we have serious concerns about Huawei and ZTE, and their connection to the communist government of China. China is known to be the major perpetrator of cyber espionage, and Huawei and ZTE failed to alleviate serious concerns throughout this important investigation. American businesses should use other vendors."
The full report can be downloaded from here.
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