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China responds to United States' report against ZTE and Huawei, calls it 'subjective guesswork'

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ZTE logo (STOCK)
ZTE logo (STOCK)

China's Commerce Ministry has responded to a report by the United States Intelligence Committee that accuses Huawei Technologies and ZTE Corp. of being potential threats to national security. The report's concerns were influenced by the companies' possible ties with China's Communist Party and its People's Liberation Army, and how the telecommunication giants can potentially create backdoors in infrastructure equipment sold to Americans that can be used to leak sensitive information.

According to Xinhua, Ministry spokeman Shen Danyang described the report as "subjective guesswork" based on "untrue evidence," a response that mirrors Huawai's concerns. Danyang appears to remain optimistic despite the strong opposition, stating that "we hope the United States can make concrete efforts to create a just and fair market environment for the two countries' companies and promote a sound development of bilateral economic and trade ties." Huawei, on the other hand, isn't quite as hopeful and feels that "the Committee appears to have been committed to a predetermined outcome."