According to a report released by the US House Intelligence Committee yesterday (October 8), US telecommunications companies should not cooperate with China’s two largest network equipment manufacturing companies, Huawei Technologies and ZTE.

This report will make the business prospects of the two companies in the US gloomy.

Huawei is suspected of threatening US national security.

The committee believes that this is a long-term security threat and is related to the equipment of these companies.

He also asked the US Committee on Foreign Investment (CFIUS) to evaluate these risks and block all deals by Huawei and ZTE.

Huawei is the world’s second largest manufacturer of routers, switches and other telecommunications equipment, after Sweden’s Ericsson.

The House Intelligence Committee also received multiple allegations that Huawei was involved in corruption, bribery, discrimination and copyright infringement.

This report was published just as Huawei considered conducting an initial public offering (IPO).

ZTE also sent a notice of `strong protest` against accusations that it operates under the direct direction of the Chinese government.

According to the above report, Huawei and ZTE are not the only cases that threaten US security.

In 2008, Huawei and private company Bain Capital were rejected by the US’s offer to buy telecommunications company 3Com for national security reasons.

The US is not the first country to take precautions against Huawei.

At the end of September, US President Barrack Obama announced that he would block the investment deal of Ralls Corp (China) also for security reasons.

Ha Thu (summary)