Feeds

Only buy Huawei or ZTE if you like being SPIED ON - US politicos

Exhibitionists needn't listen to protectionists

Security for virtualized datacentres

Huawei and ZTE, China's top makers of telecoms kit, should be locked out of the US market because their technology poses a security risk, a US House of Representatives group said today.

The Intelligence Committee believes there is a threat of Chinese state influence on the two companies that would make them a liability in the American telecommunications market, and that businesses need to be aware of the potential for espionage.

The committee came to its conclusions following an 11-month investigation, during which ZTE and Huawei defended themselves and answered the government's questions.

Charles Ding, corporate senior VP for Huawei, told the committee that his company was an independent enterprise and wasn't influenced by the Chinese government.

"Huawei is entirely owned by its employees. No third party - including government institutions - has any ownership interest in Huawei," he said. "Huawei’s success has not been based on favouritism or subsidisation by the Chinese government."

Zhu Jinyun, senior VP for North America and Europe at ZTE, insisted that the company was the "most transparent publicly owned telecoms company in China".

"The committee’s central question has been: would ZTE grant China’s government access to ZTE telecom infrastructure equipment for a cyber attack?" he explained. "Let me answer emphatically: no! China’s government has never made such a request. We expect the Chinese government never to make such a request of ZTE. If such a request were made, ZTE would be bound by US law."

Both Huawei and ZTE have consistently denied that they are a threat to the US's cyber security, while the American authorities have given every impression of having found the pair of firms guilty even before the investigation concluded. Allegations against the Chinese firms have ranged from enabling espionage attacks to receiving government subsidies so they can undercut the competition.

The Intelligence Committee's report claims that the companies didn't hand over all the documents requested, including information about their relationships and regulatory interaction with the Chinese government.

“As this report shows, we have serious concerns about Huawei and ZTE, and their connection to the communist government of China," committee chairman Mike Rogers said. "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 panel is planning to forward allegations it received from industry experts, and current and former employees of Huawei, to the Justice Department and the Department of Homeland Security, the draft said. The committee is also calling on the Committee on Foreign Investments to block acquisitions, takeovers or mergers involving Huawei and ZTE.

According to the report, there are security risks linked to the companies' equipment and services, but detailed evidence of these risks were not given in the unclassified version made public today. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.