U.S. lawmakers have alleged that Chinese equipment makers’ ZTE and Huawei potential expansion into the U.S. could increase the instances of cyberattacks and spying. But the companies are working to dispel those accusations by stating they are not controlled by the Chinese government.
The New York Times is reporting that the companies are looking to supply telecommunications gear to power networks in the U.S., but they might face restrictions. During a congressional hearing, the manufacturers were accused of not cooperating with an investigation and had not shown they were independent of the Chinese government, which has been accused of stealing U.S. intellectual property. Charles Ding, a senior vice president at Huawei, has said his company has been “hindered by unsubstantiated, nonspecific concerns that Huawei poses a security threat.” A member of the U.S. panel explained that there is concern that the Chinese government would use Huawei and ZTE to get information if they expanded into the U.S.
Yankee Group Senior Analyst Boris Metodiev comments
“If there is national security threat from using the equipment of the two Chinese companies in the U.S., the investigation committee needs to find a solid proof for it. Otherwise, it will look as an unfair way to hinder their seemingly inevitable expansion in the US and a way to promote the local American manufacturers. I don’t understand how the companies ‘might face restrictions.’ If it is proven that the companies are involved in cyber attacks and spying, they should be banned completely; their reputation will be tarnished and it will be all over for them, as far as international sales is concerned. And if nothing is proven, then there shouldn’t be any restrictions whatsoever. How about any other foreign equipment manufacturers? Are they going to be investigated too?”
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News | May 24, 2013
News | May 23, 2013