House Intelligence Committee report blasts Huawei, ZTE as threats to U.S. national security

08.10.2012

The Committee report also makes vague accusations related to what Committee investigators supposedly heard from "industry experts and former and present employees" about the two companies. For instance, the report says it heard from several former employers that Huawei uses "patented material from other firms," though it isn't specific, and that Huawei may be evading licensing requirements related to software for its employees.

There are also allegations that Huawei employees visiting from China on tourist or conference visas are working full time in the U.S. for Huawei in violation of U.S. immigration laws, and the House Committee intends to share its information with the Department of Homeland Security. Other allegations concerned supposed fraud and bribery when seeking contracts in the U.S. There are also allegations from employees about supposed discrimination and how it's "difficult if not impossible for any non-Chinese national to be promoted in Huawei offices in the U.S."

The Committee report asserts that undisclosed companies in the U.S. using Huawei or ZTE equipment have "experienced odd or alerting incidents" using the Chinese manufacturers' equipment "which they declined to make public." The report says it heard current and former employees tell of "flaws" in Huawei and ZTE equipment and "potentially unethical or illegal behavior by Huawei officials."

The Committee says it didn't attempt a review of Huawei or ZTE equipment. But it said it heard allegations of backdoors or "unexpected elements" in both companies' products.

The Committee report concludes it did not receive fully documented answers to its main questions about how Huawei and ZTE are connected to the Chinese government and military, and that the two companies treat their internal documentation as a "state secret." But the report also said that Huawei "admits that the Chinese Communist Party maintains a Party Committee within the company," though it failed to explain what it does exactly or who's on that committee. Huawei apparently responded this is a typical practice for companies in China. When it came to the question of whether Huawei gets special financing from the Chinese government, the report says Huawei denies that it does but refused to answer how its credit lines developed.