The US House of Representatives' Intelligence Committee has said that Huawei should be shut out of the US market because potential Chinese state influence on them poses a security threat.
The stance taken is the complete opposite of that in the UK where Huawei works with British intelligence agencies.
US panel leaders carried out an 11-month investigation of the pair because of fears that China might be spying on the country.
Huawei and ZTE want to expand in the United States, but now it seems that they will have the US government telling their customers about how they are a possible espionage threat.
According to Reuters, Huawei is considering an IPO as part of a possible effort to overcome suspicions but a spokesperson said that there was no truth to the committee's suggestions.
He said that “baseless suggestions” purporting that Huawei is somehow vulnerable to cyber mischief ignore technical and commercial realities.
ZTE released a copy of the letter it sent to the committee, stating it "profoundly disagrees" with the claim that it is directed or controlled by the Chinese government.
ZTE is listed in Hong Kong and saw its shares fall on the back of the news.
At the moment ZTE has deals with Verizon, Sprint and T-Mobile EVEVE.UL. If these telcos start listening to politicians then the Chinese companies could face trouble in the US.
The panel's draft report faulted both companies for failing to satisfy the committee's requests for documents to allay its concerns, including detailed information about formal relationships or regulatory interaction with Chinese authorities.
It says that US companies should find another vendor if they care about intellectual property, consumer privacy, and the national security of the USA. Of course, the United States already has the infamous Patriot Act, which itself has faced criticisms from privacy groups.
CBS News' "60 Minutes", claimed to have received credible allegations from unnamed industry experts and current and former Huawei employees suggesting Huawei, in particular, may be guilty of bribery and corruption, discriminatory behaviour and copyright infringement.
The committee said that it will refer such allegations to the Justice Department and Department of Homeland Security.
However, before even that flick o' Glimspe into theVON, was hauwei, iN telco, monitoring everyone IN NETWORK LIKE Korean gANSTERS dAY r.
pOLICE HAD red BUTTON, TO CALL sTATION, TO GET INFO WHILE ON pATROL, MAYBE PLACE & TIME OF dEA.TH, iN THEnam.E
caps lock off, same publicity, same NO Laws USA. by now think entire world be given or gotten.
Huawei IS BAD. No other worlds. Kikllers with throat blade, enslavers & profiteers.
rob p saw hu as early1990s' thanger, I don't know age, gramps knew of back into us 1930s', as stock ticker & wholesale grocier. probably even Oscars, Whole Food has tick in Bun.
FREE People, Free Armoury, youll need its. kill huawei, about 'cide slogan. slo kum ot slo guns. gun on, gunner, if ye vants to live.
all german hate of Manchester syndicates kant pull punch to huawei, just too old, from sti8ll lawless enviorments, WorldWide.
Signed: DRASHEK powergrabberologist....
When every human is dual natured, what the right hand does will ultimately benefit the left hand too - so long as they work hand-in-hand. To the delight of The Fathering Mothers and their Mothering Fathers, of course. So long as one is human, nitty-gritties like race, nationality, ideology and other glitzy tricks of Exclusivity & Division are merely inconveniences to be dealt with once the objective has been achieved, Truth being that which is true for all, truths like oxygen and heartbeat whilst not forgetting that biggy, radioactivity. Everything cyclical being of The Repetition, however, it won't be long before another round of much the same begins or what Uncle Tommy & his Kabalistic Kabin Krew calls, "A Change you can be deluded by" - with little, little things like "Science-Technology", "Gadgetry", "Entertainment", "Religion", "Politics", "Entitlement", "Domination", "War", "The Exchanges", and so forth being thrown-in to keep the stupido-dumbo occupied whilst he is being strung like an out-of-tune violin. The Material Realm being of The Limit because when Energy Transformation, oka The Zero Sum Game, is the only game in town, yous gottas asks yourselfs vun questions, which is, "How long do you expect this to go on? Well punk, for how long?" 'So long as I am at the front of the next "new" PhonyPoddyPaddy queue'. There, that should light up that beddish lot of Mothering Fathers brighter than any XMas Bang, XMas being a mere 100++ days away whereas Christmas is a feeling in The Heart - for the satisfaction of The Brain if nothing else.
Shame on you Bolshevik criminals!