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US government claims Huawei and ZTE pose a risk to national security: the accusations, responses, and fallout

The US government has released a report in which it claims that Huawei and ZTE pose a national security risk and that American companies should not conduct business with the Chinese telecommunication giants. Huawei, ZTE, and the Chinese government have all flatly refused these claims, calling the reports unfounded and subjective. We'll be tracking the fallout from this investigation and any more details from the US government's claims right here.

  • Emma Roth

    Mar 23, 2022

    Emma Roth

    ZTE’s probation for selling US-made products to Iran and North Korea comes to an end

    Photo by James Bareham / The Verge

    ZTE’s probation in the US is coming to an end following a Texas judge’s ruling on Tuesday, according to a report from The Wall Street Journal. The Chinese telecommunications company had been under supervision by the US government since pleading guilty to illegally selling American-made equipment in Iran and North Korea in 2017. ZTE incurred a $1.2 billion fine as a result of violating US sanctions against both countries.

    As the WSJ notes, US District Judge Ed Kinkeade decided not to punish ZTE for alleged visa fraud, which is the subject of a separate case that’s currently underway in Georgia. Last March, a ZTE researcher and professor at the Georgia Institute of Technology were accused of abusing the visa system to bring Chinese nationals to the US to work for ZTE. Kinkeade encouraged the government to take necessary legal action against the company, however.

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  • Makena Kelly

    Jul 16, 2019

    Makena Kelly

    Congress wants to block the Trump administration from weakening Huawei restrictions

    Illustration by Alex Castro / The Verge

    A group of senators introduced a bipartisan piece of legislation Tuesday that would limit the Trump administration’s abilities to scale back pressure on the Chinese tech giant Huawei without an act of Congress.

    The Defending America’s 5G Future Act, led by Sens. Tom Cotton (R-AR) and Chris Van Hollen (D-MD), would block the Trump administration from single-handedly allowing Huawei to conduct business with American companies. If approved, it would also keep the Commerce Department from removing the Chinese company from its “Entity List,” codifying a recent Trump administration executive order. That list prevents companies like Huawei from purchasing US tech without government approval.

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  • Nick Statt

    Apr 23, 2019

    Nick Statt

    Huawei will help build Britain’s 5G network, despite security concerns

    Illustration by William Joel / The Verge

    UK Prime Minister Theresa May has signed off on letting Chinese telecommunications giant Huawei help build “non-core” parts of the country’s 5G infrastructure, including antennas and other network components, according to The Telegraph. The decision was made today by the National Security Council, of which May is the chair, and has drawn considerable criticism from other UK politicians who fear Huawei’s supposed ties to the Chinese government may open British citizens, companies, and government agencies to cyberattacks and other forms of espionage.

    GCQQ head Jeremy Fleming, who has warned against cyberthreats from China and Russia in the past, is said to have given a speech in Glasgow, Scotland today to members of the intelligence agencies of Australia, Canada, New Zealand, and the US warning against such threats from foreign adversaries, according to The Telegraph. Other members of GCHQ have expressed concern over use of Chinese telecommunications providers. But the organization’s official position appears to be that the threats can be managed and minimized due in part to Huawei’s involvement centering on “non-core” network infrastructure.

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  • Shannon Liao

    Mar 1, 2019

    Shannon Liao

    Canada will let the US extradite Huawei’s CFO

    China’s Telecom Giant Faces Criminal Charges in the U.S.
    Photo by Kevin Frayer/Getty Images

    The Canadian government will allow the US to extradite Huawei CFO Meng Wanzhou. Canada’s Department of Justice announced today that the decision “follows a thorough and diligent review of the evidence in this case.” It called the evidence the US presented “sufficient.” The government’s decision will now be heard by a judge, who will determine whether the extradition process will move forward.

    Meng, who’s also the daughter of Huawei founder Ren Zhengfei, was arrested in Vancouver in December and held on charges of fraud. Meng served on the board for a Hong Kong-based company called Skycom, which allegedly did business with Iran between 2009 and 2014, in violation of US sanctions. Huawei has also been separately accused of stealing intellectual property associated with a phone testing robot developed by T-Mobile, marketed under the name “Tappy.”

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  • Sean Hollister

    Feb 18, 2019

    Sean Hollister

    Huawei founder speaks out: ‘The US can’t crush us’

    Illustration by William Joel / The Verge

    Huawei founder Ren Zhengfei basically just said his company is too big and too important to fail.

    In his first public interview since his daughter — Huawei CFO Meng Wanzhou — was arrested in December, he tells the BBC that the US government’s accusations and criminal indictments, including fraud and the theft of trade secrets, won’t be enough to “crush” Huawei.

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  • Shannon Liao

    Aug 3, 2018

    Shannon Liao

    The DNC tells Democrats not to buy Huawei or ZTE devices ever

    Memphis Marks 50th Anniversary Of Martin Luther King Jr’s Assassination
    Photo by Joe Raedle/Getty Images

    The Democratic National Committee is warning Democrats not to use Huawei or ZTE devices, after the committee learned that one of its associated organizations was thinking of purchasing ZTE phones for members. “It’s very important that party and campaign workers not use ZTE or Huawei devices, even if the price is low or free,” DNC chief security officer Bob Lord wrote in an internal memo, as reported by CNN. Lord said people shouldn’t be using devices from either Chinese company for work or personal use.

    The words echo what federal officials have already said about Huawei and ZTE posing possible security threats to the US. In February, CIA, NSA, and FBI chiefs testified in front of a Senate committee that the two companies were beholden to the Chinese government and the devices could become tools for undetected espionage. Both Huawei and ZTE have denied any cybersecurity concerns.

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  • Nathan Ingraham

    Mar 22, 2014

    Nathan Ingraham

    The NSA has reportedly been spying on Huawei's servers for years

    The US government has made definitive statements about Chinese telecommunications company Huawei — a 2012 report claimed that the company's networking equipment posed a national security risk, something that caused the company to largely retreat from operating in the US market. Somewhat ironically, however, the US government appears to be doing something very similar to what it accused Huawei of. The New York Times is reporting that the NSA has created its own "back doors" directly into Huawei's telecommunications networks for the purpose of collecting information on the vast array of hardware that the company claims connects a third of the global population.

    The NSA also monitored communications of the company's top executives and also searched for links between Huawei and the People's Liberation Army (of which Huawei CEO Ren Zhengfei was a member). According to the documents obtained by The New York Times and Der Spiegel from Edward Snowden, the NSA even wanted to have access to networking equipment that Huawei was selling to other countries so that it could monitor and search through both computer and telephone networks as it saw fit.

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  • Amar Toor

    Feb 14, 2014

    Amar Toor

    US urges South Korea to move network traffic away from Chinese hardware, citing spying concerns

    huawei logo stock
    huawei logo stock

    The South Korean government has decided to route sensitive data away from networks operated by Huawei, amid longstanding fears from the US that the Chinese company's infrastructure could be used to spy on communications. As the Wall Street Journal reports, the US had been urging its South Korean allies to route government communications away from Huawei networks, claiming that the infrastructure could be used to spy on communications with American military bases there. As a result, Huawei equipment will not be used at any American military base in South Korea.

    The Obama administration denies playing a role in the decision, and South Korean officials have not commented. The Journal reports that the White House made a point of keeping the talks private because it didn't want to be seen as meddling in its ally's business affairs.

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  • Sean Hollister

    Oct 19, 2013

    Sean Hollister

    Huawei issues definitive statement about espionage fears: 'we have never been asked to provide access to our technology'

    Huawei (STOCK)
    Huawei (STOCK)

    In a new cybersecurity whitepaper (PDF) issued today by the company, Huawei deputy chairman of the board Ken Hu writes that Huawei has "never been asked to provide access to our technology, or provide any data or information on any citizen or organization" whatsoever. The full statement reads:

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  • Jacob Kastrenakes

    Jul 18, 2013

    Jacob Kastrenakes

    Huawei lashes out against 'racist' treatment and 'defamation' by governments

    huawei logo
    huawei logo

    Huawei is going on the offensive against politicians and critics, claiming that they've subjected the company to racist treatment and slander because of its Chinese heritage. Both the United States and the United Kingdom have subjected Huawei — a major manufacturer of networking equipment — to additional scrutiny over concerns that it could covertly assist state-sponsored hacking from China. There's been a lot of talk, but Huawei doesn't think there's been a lot of evidence. "Someone says they got some proof of some sort of threat? Okay," William Plummer, vice president of external affairs at Huawei, said in a statement to The Verge. "Then put up. Or shut up."

    Earlier today, former CIA head Michael Hayden told The Australian Financial Review that he believes Huawei supplies information to the Chinese government. While he isn't certain of how much detail the company shares, he believes that it at least includes "intimate and extensive knowledge of the foreign telecommunications systems it is involved with."

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  • Jacob Kastrenakes

    Jul 18, 2013

    Jacob Kastrenakes

    UK investigates Huawei amid concerns of Chinese hacker invasion

    huawei logo stock
    huawei logo stock

    A Huawei cybersecurity center is under review in Britain as lawmakers look to identify whether the Chinese telecommunication equipment manufacturer could pose a risk to national security, reports Reuters. Huawei's multi-billion pound deal to supply networking equipment to BT Group — Britain's largest telecom — has come under fire recently due to concerns that it could covertly be used to assist state-sponsored hacking from China, where Huawei is headquartered. According to the Associated Press, Huawei established a UK cybersecurity center in order to provide oversight of its equipment and technologies, but lawmakers remain concerned that it isn't doing enough.

    The security center's review will be conducted by Britain's national security advisor Kim Darroch, though further details on the investigation haven't been revealed. Huawei has seen similar scrutiny in the United States as well, following a congressional report that suggested the company could be a risk to national security. In May, Huawei's CEO spoke out to battle allegations that the company could be connected to hacking, stating that "Huawei has no connection to the cybersecurity issues the US has encountered in the past, current, and future." So far that largely hasn't helped Huawei in assuaging security concerns, but it's continuing to push into the US market regardless.

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  • Amar Toor

    May 9, 2013

    Amar Toor

    Huawei CEO breaks 25 years of silence to deny US espionage allegations

    Huawei (STOCK)
    Huawei (STOCK)

    Huawei founder and CEO Ren Zhengfei has vehemently denied allegations that his company poses a risk to US intelligence and national security, refuting claims that the smartphone maker has illicit ties to the Chinese government. As Reuters reports, the 68-year-old executive and founder discussed the issue with reporters in New Zealand Thursday, marking the first time in 25 years that he has spoken to the media.

    A 2012 report from the US House Intelligence Committee identified both Huawei and ZTE as serious risks to national security, alleging that the companies could use their communications hardware and network technology to feed sensitive information to the Chinese government. Huawei had previously refuted these claims, arguing that they were founded on scant evidence, but the company's secrecy and perceived lack of transparency have done little to allay concerns over its practices.

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  • Jeff Blagdon

    Apr 24, 2013

    Jeff Blagdon

    Huawei backs out of US network equipment market, citing 'geopolitical reasons'

    Huawei (STOCK)
    Huawei (STOCK)

    Following last October's Congressional report stating that Huawei’s networking equipment poses a national security risk, the business group in charge is announcing plans to back out of the US market, reports IDG. On Tuesday, Carrier Network Business Group CTO Li Sanqi announced that "apparently, due to whatever the geopolitical reasons, we are not focusing on the US market." Huawei’s critics in government and elsewhere have voiced concerns that the equipment could enable some in its home country of China to listen in on network traffic, although a probe into the issue ordered by the White House didn’t turn up any evidence of spying.

    Sanqui guesses that the US represents about 30 percent of the world’s carrier business and stresses that Huawei would love a piece of the action, if it was possible. "Don’t get me wrong, I’d love to get into the US market," he explained, while pointing to opportunities in growing markets like China. Concerns about Huawei networking equipment surfaced again late last month, when the US government reportedly demanded to oversee equipment purchases by Sprint and SoftBank in the US as a precondition for their proposed merger.

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  • Chris Welch

    Apr 13, 2013

    Chris Welch

    US and China form working groups to collaborate on cybersecurity, climate change

    hacking stock 640
    hacking stock 640

    The United States and China will form working groups that focus in on two of today's most pressing issues: cybersecurity and climate change. That's according to US Secretary of State John Kerry, who outlined the plans during a visit to Beijing. The collaboration on cybersecurity is particularly notable; both countries have traded barbs and accusations of cyber espionage in recent months. It's unclear what (if anything) will come as a result of the joint effort, but the working group's formation suggests both sides are eager to quell months of rising tension and public squabbling.

    Both countries are also promising to work together on a "more focused and urgent" response to climate change concerns. "The United States of America and the People's Republic of China recognize that the increasing dangers presented by climate change," reads a joint statement announcing the second working group. "Forceful, nationally appropriate action by the United States and China – including large-scale cooperative action – is more critical than ever," it says. Each acknowledges climate change as a crisis, but the US and China often disagree on the best way of tackling the issue — China insists developing nations shouldn't need to invest the same resources as larger carbon emitters. Set to begin immediately, the global warming-focused group will work to discover new ways in which which the US and China can "advance cooperation on technology, research, conservation, and alternative and renewable energy." Findings will be presented at this summer's Strategic and Economic Dialogue (S&ED).

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  • Chris Welch

    Apr 5, 2013

    Chris Welch

    Silicon Valley voices opposition to China cyber-espionage provision

    ZTE (STOCK)
    ZTE (STOCK)

    Last month, Congress signed into law an appropriations bill that requires four federal agencies to conduct an FBI-assisted security assessment when purchasing computers and other IT gear manufactured in China. Predictably, China came out in strong opposition to the provision — meant to shield the Justice Department, Department of Commerce, NASA, and the NSF against cyber espionage — and now Silicon Valley is taking issue with the restrictions. A number of industry trade associations have banded together and authored a letter to leaders on Capitol Hill voicing their concern. "Fundamentally, product security is a function of how a product is made, used, and maintained, not by whom or where it is made," the document reads.

    Among those groups is the Information Technology Industry Council, which represents IBM, Lenovo, and other hardware vendors. It bluntly states that sound cybersecurity policy has "drifted off course" thanks to the provision. In the letter (also undersigned by the US Chamber of Commerce), companies warn that requiring risk assessments for every purchase will bog down the speed with which government agencies can upgrade equipment — leaving them vulnerable to the latest fast-hatching security exploits. Retaliation is a potential worry for tech companies; the trade groups warn that China (and worse yet, other countries) could easily demand similar reviews for items imported from the United States. The tech firms are hoping that lawmakers will "review the security implications and competitive impact" of the provision as it currently stands, and ideally come up with a less clumsy solution. More importantly, they're urging Congress not to include similar language in future legislation.

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  • Chris Welch

    Apr 3, 2013

    Chris Welch

    Huawei not expecting growth in US this year as security concerns effectively freeze sales

    Huawei (STOCK)
    Huawei (STOCK)

    Huawei isn't expecting to see any significant business growth in the United States this year, with the telecom supplier attributing its stagnant performance to national security concerns raised by the US government. Speaking to The Wall Street Journal, wireless network marketing VP Bob Cai made it clear that Huawei has no illusions about its current predicament, which has left the company effectively shut out of sales to government agencies and American businesses. In October of last year, a US Congressional report found that Huawei and fellow Chinese manufacturer ZTE pose a national security risk to US interests. Tensions between both countries have escalated in the months since, with lawmakers recently signing legislation that calls for the Department of Justice, Department of Commerce, NASA, and the NSF to assess potential risks before purchasing any equipment sourced from China.

    Prospects are better for Huawei overseas, however. Cai told the WSJ that his company expects to see worldwide growth of at least ten percent in 2013. Huawei showed strong financial gains last year, evidence that the US controversy hasn't yet managed to hamper its operations elsewhere in the world.

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  • Amar Toor

    Mar 30, 2013

    Amar Toor

    China voices strong opposition to US cyber-espionage law

    china / chinese flag (STOCK)
    china / chinese flag (STOCK)

    China has come out in strong opposition to a new US law that restricts government purchases of Chinese technology, saying the measure threatens to harm economic relations between the two countries. The provision, passed Thursday as part of a larger US spending bill, requires NASA, the Department of Justice, and the Commerce Department to consult with federal law enforcement before procuring Chinese IT systems. The law purportedly aims to mitigate the risk of cyber-espionage, but as Reuters reports, Chinese authorities say it could have drastic consequences.

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  • Dieter Bohn

    Mar 29, 2013

    Dieter Bohn

    Sprint and SoftBank promise not to use Chinese networking equipment, says lawmaker

    son hesse softbank sprint stock 1020
    son hesse softbank sprint stock 1020

    As Sprint's proposed buyout by Japanese carrier SoftBank rumbles forward, it looks like the usual regulatory suspects like the DOJ and FCC aren't the only agencies with concerns. The US Congress is also getting involved, yesterday letting it be known through the WSJ's sources that it had serious concerns that the new Sprint would use equipment manufactured in China by Huawei or ZTE to build out its network. Fears that the security of such equipment could be suspect have been commonplace and pervasive, and it looks like Sprint and SoftBank are taking them seriously.

    The chairman of the House intelligence committee, Mike Rogers of Michigan, said today that he received a promise from both companies to not use equipment from China and that they would replace Huawei products already in use by Clearwire. "I am pleased with their mitigation plans, but will continue to look for opportunities to improve the government’s existing authorities to thoroughly review all the national security aspects of proposed transactions," Rogers said.

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  • Jeff Blagdon

    Mar 28, 2013

    Jeff Blagdon

    US wants Sprint-SoftBank deal to avoid Chinese network equipment: WSJ

    Huawei (STOCK)
    Huawei (STOCK)

    In order for the $20 billion acquisition of Sprint Nextel by Japan’s SoftBank to go ahead, the US government wants to oversee network equipment purchases in a bid to keep Huawei and ZTE products out of the nation’s infrastructure, reports The Wall Street Journal. Last year, a Congressional report labeled the two companies’ equipment as a national security risk, and SoftBank uses Huawei equipment, popular in many markets for its low prices, on its own network at home.

    Citing an unnamed source, The Journal explains that the government is expected to require notification in advance of any equipment purchases for the core of Sprint’s network. However, because of concerns about violating trade rules, it’s unlikely that there will be specific prohibitions against the two companies’ products.

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  • Dante D'Orazio

    Mar 27, 2013

    Dante D'Orazio

    US Congress restricts government purchase of Chinese computer equipment, citing cyber-espionage concerns

    Huawei (STOCK)
    Huawei (STOCK)

    The latest US appropriations bill, signed into law just this week, includes a provision that is likely to further raise tensions between the country and China. The provision requires the Department of Justice, Department of Commerce, NASA, and the NSF to perform a formal assessment of risk of cyber-espionage before purchasing computer systems and other IT equipment. There is a clause in the bill that states that the assessment must specifically analyze — with the assistance of the FBI — any "such system being produced, manufactured or assembled by one or more entities that are owned, directed or subsidized" by the People's Republic of China to determine if the purchase is "in the national interest of the United States." Stewart A. Baker first wrote about the provision on his blog yesterday, and Reuters published a report on the restriction earlier today.

    The provision comes shortly after a spate of attacks against US media outlets and government agencies. A report from security agency Mandiant traced those incidents to a building in Shanghai housing the People's Liberation Army Unit 61398, which is involved in cyber-espionage — a claim the Chinese government has denied.

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  • Amar Toor

    Jan 21, 2013

    Amar Toor

    Huawei says profits increased by 33 percent in 2012, despite US security concerns

    huawei logo
    huawei logo

    Huawei today announced details about its 2012 financial performance, amid lingering security concerns over the company's alleged ties to the Chinese government. At a press conference held Monday, Chief Financial Officer Cathy Meng said Huawei's net profits rose by 33 percent last year, reaching 15.4 billion yuan ($2.5 billion). This marks a notable turnaround from 2011, when the phone manufacturer saw profits of 11.6 billion yuan ($1.9 billion).

    Huawei, which played a prominent role at this year's CES, said its 2012 revenue rose by 8 percent on the year to 220.2 billion yuan ($35.4 billion), and expects sales to rise by as much as 12 percent in 2013. The Chinese company remains privately held, though Meng said Huawei has an "open mind" to the possibility of going public.

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  • Sam Byford

    Jan 8, 2013

    Sam Byford

    'Steve Jobs is gone. Now there is a lack of innovation' says Huawei's consumer CEO

    richard yu huawei
    richard yu huawei

    "The best smartphone is from Huawei. Not from our competitors."

    "In the past people understood that the best products came from Apple or Samsung," Yu told me. "We want to change this so that people understand that the best products come from Huawei. That's my target." Yu believes that his company is uniquely placed to offer high-end products around the world, thanks to Huawei's two decades of experience in the telecoms industry and what he calls the "Asian hardware advantage." Yu also argued that Huawei is stronger in software than competitors from Korea and Taiwan, and blends "European" design into the mix. "We're a globalized company," says Yu, "so that's why we can do better. And behind all that, we have our spirit. It's very important."

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  • Sam Byford

    Dec 18, 2012

    Sam Byford

    EU considering investigation into Huawei and ZTE's controversial trade practices

    huawei logo
    huawei logo

    The European Union's trade commissioner has said that a decision will soon be made on whether to investigate Chinese telecoms firms ZTE and Huawei for violations of international law. Karel De Gucht told the Wall Street Journal that the European Commission is in the process of collecting information on the two companies while discussing the matter with authorities in China. A Commission report seen by the Journal says that ZTE and Huawei are "clearly dumping" their products into the European market at low prices unfairly subsidized by Chinese government aid.

    The EU has raised the possibility of investigating ZTE and Huawei before, but the last effort was delayed since no European manufacturer had formally complained about the Chinese companies' government subsidies, which is normally required. If the EU did press on with an investigation without receiving such a complaint, it would be an unprecedented move that could aggrieve Beijing, which has already had to deal with accusations that ZTE and Huawei pose a national security risk to the US.

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  • Justin Rubio

    Oct 26, 2012

    Justin Rubio

    Clearwire to use Huawei equipment for LTE upgrade after government review, says Reuters

    The United States government has green-lit Clearwire's proposed plans to utilize Huawei equipment as part of its LTE upgrade next year, according to Reuters. The wireless provider stated that they worked with "the technical arms of multiple federal agencies" to review the deal, a crucial step after a US House Intelligence Committee report accused Huawei of being a threat to national security. Sources recently told Reuters that no evidence of spying by Huawei was found after an investigation that followed the report, although the claim was later refuted by White House officials.

    Clearwire will be putting all of its vendors' hardware and software through rigorous tests by a government-approved third party company to examine any possible flaws in security. It's important to note that Huawei equipment is already being utilized for Clearwire's existing network and accounts for less than 5 percent of Clearwire's budget for the LTE update. Samsung Electronics, Cisco Systems, and Ciena Corp will also be providing equipment for the network upgrade.

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  • Adi Robertson

    Oct 17, 2012

    Adi Robertson

    White House-ordered Huawei probe reveals no evidence of spying, says Reuters (update)

    Huawei Ascend P1 stock 1024 lead
    Huawei Ascend P1 stock 1024 lead

    A White House-ordered probe has revealed no evidence that telecommunications company Huawei spied for the Chinese government, sources tell Reuters. According to two people apparently familiar with the review, there was nothing to indicate active spying, although one source says that "certain parts of government really wanted" such evidence. This contrasts sharply with a US Congressional report released last week, calling both Huawei and ZTE, another major Chinese tech company, a national security risk. The report's findings have not been announced publicly, and White House National Security Council spokeswoman Caitlin Hayden declined to comment. It doesn't seem to have looked for backdoors or other potential future threats, a concern of Congress.

    The US House Intelligence Committee previously reported that Huawei and ZTE had failed to provide information about their interaction with the Chinese government, and that possible cases of bribery or corruption had been found. The two were also singled out for being a threat to US intellectual property. Both companies have denied the charges, and the Chinese government accused Congress of searching to reach a "predetermined outcome." While it's not clear what the reports will mean for Huawei and ZTE, this case is part of a larger rivalry, both between the American and Chinese governments and between Huawei and companies like Cisco, which appears to have lobbied for the investigation.

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