Huawei and ZTE should be kept out of the US market because the potential state influence on both companies could pose a security threat, a US congressional report is expected to say.
The draft report by the US House of Representatives' Intelligence Committee will be released later today (8 October) and its findings have been strongly rejected by both manufacturers. The committee lead an 11-month investigation into both firms and was critical of both companies for failing to meet requests for documentation, according to Reuters. These reports included information about formal relationships with the Chinese government.
A statement from Huawei spokesman William Plummer said: 'Baseless suggestions otherwise or purporting that Huawei is somehow uniquely vulnerable to cyber mischief ignore technical and commercial realities, recklessly threaten American jobs and innovation, do nothing to protect national security, and should be exposed as dangerous political distractions from legitimate public-private initiatives to address what are global and industry-wide cyber challenges.'
ZTE said it 'profoundly disagrees' with the suggestion it operates under state control. A spokesman said: 'ZTE should not be a focus of this investigation to the exclusion of the much larger Western vendors.'
The committee will call for a government group that reviews the security implications of foreign investments to block any aqcuisitions by both companies.
Editor: Graeme Neill