ZTE denies U.S. security threat accusation

China's telecom equipment and handset maker ZTE Corp. has denied U.S. allegations that its products could threaten U.S. state security.

In a draft report, the U.S. House of Representatives' Intelligence Committee said ZTE and its larger rival Huawei could pose security threats. Its final report is scheduled to be released later Monday.

The report is based on an 11-month investigation launched amid concerns that the Chinese government could use ZTE and Huawei's telecom systems and equipment to conduct espionage activities on U.S. homeland.

The two firms denied and refuted the allegations at an earlier hearing of the committee, held last month in Washington.

"ZTE has set an unprecedented standard for cooperation by any Chinese company with a congressional investigation," a company statement said.

"Since April 2012, ZTE has presented the Committee with facts that demonstrate ZTE is China's most independent, transparent, globally focused publicly traded company," it added.

"ZTE's equipment is safe. In ZTE's Trusted Delivery Model, which ZTE offers all U.S. carriers, ZTE's equipment is evaluated by an independent U.S. threat assessment laboratory with oversight by U.S. government agencies."

The company urged the U.S. House Committee on Intelligence to expand its oversight over the whole telecom industry rather than just target Chinese companies.

"Most or all U.S. telecom equipment is made in China, including that provided by Western vendors," it added.

Huawei, which like ZTE is headquartered in Shenzhen, told Xinhua that it would respond to the report later Monday.