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Congress to conduct a second investigation on Huawei and ZTE

After more evidence against Huawei and ZTE have arose, the US House of Representatives Committee of Intelligence is planning on conducting another investigation to see if these Chinese firms are indeed trying to spy on the US with their consumer tech products.

The US House of Representatives Intelligence Committee has received more complaints about Huawei and ZTE, and the committee will respond by conducting another investigation on the two Chinese telecom equipment manufacturers.  

In the second wave of complaints, people continued expressed concerns over the security of Huawei and ZTE products, and warned that the two companies may be using their exported equipment to spy on American businesses.  If the next investigation uncovers more serious and specific evidence of espionage, Huawei and ZTE may be completely expelled from the US market.

In the first half of 2012, Huawei sales revenue reached 102.7 billion yuan, 67.8% from overseas markets.  ZTE has reported a revenue of 42.6 billion yuan so far this year, with 21.8 billion yuan from overseas, and has been ranked the world's fifth largest supplier of telecommunications equipment.  ZTE has been promoting the next generation of wireless communications technology in Europe.

Some Chinese IT industry experts have complained that the US Congress is biased.  Seventy-three Congress members have investments in Cisco, Huawei and ZTE's American competitor.

Adding to Huawei and ZTE's troubles, the Intelligence committee was dissatisified with its investigation into the companies' financing and management.  When asked, Huawei representatives would not elaborate on the relationship between the company and several Chinese state-owned banks.   The representatives also would not give clear and accurate information about the company's structure and decision-making process.  

Source: telecom.chinabyte.com


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