A House Intelligence Committee report released Monday warns U.S. businesses against doing business with Chinese telecom giants Huawei Technologies Ltd. and ZTE Corp, because they pose a national security risk.
The panel says U.S. regulators should block mergers and acquisitions in this country by Huawei Technologies Ltd. and ZTE Corp, among the world’s leading suppliers of telecommunications gear and mobile phones.
Reflecting U.S. concern over cyber-attacks traced to China, the report also recommends that U.S. government computer systems not include any components from the two firms because that could pose an espionage risk.
“China has the means, opportunity, and motive to use telecommunications companies for malicious purposes,” the report says.
The subject of a Sunday “60 Minutes” profile, Huawei is aggressively expanding its U.S. presence, particularly with fourth generation digital networks.