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The Intelligence Committee of the US House of Representatives has issued the long awaited report into Huawei and ZTE's activities and has concluded that the two pose a threat to US national security.
The committee recommended that US firms avoid doing business with the two Chinese suppliers because they are allegedly installing equipment to spy on the US for China.
It also recommended that all US government systems, particularly sensitive systems, should exclude Huawei or ZTE equipment or component parts.
The report, released at a press conference, also urged regulators in the US to block all future acquisitions, takeovers, or mergers involving Huawei and ZTE in the US.
“American telecom businesses must use other vendors because Huawei and ZTE failed to alleviate concerns about their involvement in cyber and economic espionage,” the report said.
The Committee also urged US citizens not to buy mobile devices (phones, tablets, modems, routers and others) made by Huawei and ZTE because “they could be sending your data to China without your knowledge.”
US has always accused the two Chinese firms of having links with the Chinese government and Military, and of using backdoor telecom equipment to spy on countries around the world and shipping sensitive information to China at midnight.
Committee Chairman, Mike Rogers said at a press conference that they cited "numerous examples" of "beaconing," which is when routers installed by the two Chinese companies turn on in the middle of the night and send large data packs to China. But he did not say if that data was classified US data.
For Huawei in particularly, its founder and CEO, Ren Zhengfei left the Chinese Military and started Huawei in 1987, and the US believes he still has links with the Chinese Military, and the Chinese government uses him to spy on countries across the world.
The US House Intelligence Committee report did not explicitly state any proof of the allegations of a link with the Chinese government and military and of any wrongdoing, but it said the companies failed to cooperate with investigations.
The report states that Huawei and ZTE provided incomplete, contradictory, and evasive responses to the Committee's core concerns.
“Huawei in particular must become more transparent and responsive to US legal obligations,” the report said. “Huawei in particular failed to provide thorough information to the Committee about its corporate structure, history, ownership, operations, financial arrangements, or management.”
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