Feeds

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

Exhibitionists needn't listen to protectionists

Gartner critical capabilities for enterprise endpoint backup

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.