The House Intelligence Committee has sent a warning report stating the threat that Huawei Technologies Ltd. and ZTE Corp, could pose on the American government and society as a whole. In this report, the House Intelligence Committee warns American companies to avoid doing business with China’s two leading technology firms because they pose a national security threat to the United States. The report also claims that “China has the means, opportunity, and motive to use telecommunications companies for malicious purposes.”
Huawei Technologies Ltd. is currently the largest telecommunications equipment maker in the world, its products and services have been deployed in more than 140 countries and it currently serves 45 of the
world’s 50 largest telecoms operators. Recently, they are looking to expand into the American market, however, the panel’s recommendations will likely hamper Huawei’s ambitions to expand their business. With the booming economy of China and the debt that the U.S. owes, it’s hard to know whether this is real, or yet another U.S. story designed to protect the U.S. from competition in which they cannot favourably compete.
References :
http://en.wikipedia.org/wiki/Huawei
http://www.cbc.ca/news/business/story/2012/10/08/china-tech-firms-security-risk.html
http://en.wikipedia.org/w/index.php?title=File:Huawei.svg&page=1
To watch a video:
http://finance.yahoo.com/blogs/daily-ticker/china-huawei-zte-threaten-u-national-security-interests-155302377.html