ZTE also took a beating in the report, with ZTE pressured by the House Committee to acknowledge that 19 individuals who serve in the Communist Party Committee are either major shareholders or on the ZTE board of directors. The House Committee said it agreed to ZTE's request to not make the names of these individuals public. But the House Committee reiterated that part of the general concern is that the exact role of the Chinese Party Committee at ZTE remains unknown. The report also says that in a meeting with House Committee staff in Shenzhen, officials admitted they were willing to lose money on projects in the U.S. to get a foothold in the U.S.

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Ellen Messmer is senior editor at Network World, an IDG publication and website, where she covers news and technology trends related to information security. Twitter: @MessmerE. Email: emessmer@nww.com.

in Network World's Wide Area Network section.