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

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

2013-05-09T10:28:38Z

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...

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

2013-04-24T04:56:21Z

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.

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

2013-04-13T20:01:03Z

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...

Silicon Valley voices opposition to China cyber-espionage provision

2013-04-05T22:09:04Z

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...

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

2013-04-03T15:44:29Z

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...

China voices strong opposition to US cyber-espionage law

2013-03-30T15:41:06Z

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.

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

2013-03-29T03:29:22Z

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...

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

2013-03-28T04:58:25Z

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.