03 Sep 2012

ZTE and Huawei Investigated for Alleged Chinese Spying Plot

ZTE Corp and Huawei were invited to a US congressional hearing regarding alleged Chinese spying threats, possibly affecting the US communication infrastructure. ZTE chairman and Huawei’s deputy chairmen were invited to testify, but only Hou Weigui of ZTE confirmed participation.

The threat of possible national security breaches posed by the Chinese telecommunication companies has the US House of Representatives Intelligence Committee investigating all possible ties that could link ZTE Corp and Huawei to the Chinese Communist Party or the government of China.

Details on government relations, international pricing strategies, and company history are requested by the committee for evaluating both companies. Although ZTE accepted cooperation and full disclosure of requested data, Huawei is still to confirm its participation.

Australia also debated the question of whether the two telecommunication giants can act as private companies and operate outside China, on US ground, without raising security issues. The governments of New Zealand and Australia reviewed Huawei excluded it from participating at National Broadband Network biddings, but Australia's opposition communications spokesman Malcolm Turnbull promised that "We will review that decision in the light of all the advice in the event of us coming to government".