Chinese Regime Denies US Security Threat Report

Created: 2012-10-09 11:54 EST

Category: Business
Chinese media have slammed a US congressional report that named China’s two largest telecom gear makers as major security threats to the US. 
Following a year-long investigation, the US House Intelligence Committee warned on Monday that Huawei Technologies and ZTE Corp carried close ties with the Chinese regime, and they could open up US telecom infrastructure to spying from China.
In response, Chinese state-run Xinhua News Agency accused the US of protectionism, saying the Committee’s findings were, “totally groundless.” Huawei, meanwhile, called the report “China bashing.”
Still, Representative Mike Rogers who chairs the Committee has cautioned US telecom companies against using equipment made by Huawei and ZTE.
[Mike Rogers, House Intelligence Committee Chairman]:
"Huawei and ZTE seek to expand in the United States, but as a result of our investigation, we do not have the confidence these two companies, with their ties to the Chinese government can be entrusted with infrastructure of such critical importance.”
Representative Rogers says US companies need to have security in mind when engaging the two Chinese firms.
[Mike Rogers, House Intelligence Committee Chairman]:
 Again, our advice to the private sector is this: your obligation is to consider larger data protection and national security implications of your business decisions and we would not advise doing business with these two companies."
Xinhua rebuffed the Congressional report as an example of a Cold War mentality, and suggests Chinese investment could offer job opportunities for the “sluggish US economy.”