Chinese tech firms hurt by U.S. political illusions

China-based telecommunications companies Huawei and ZTE, which are now operating in some 150 countries, found themselves in dire straits when they attempt to expand their business and create jobs in the United States.

By claiming Huawei and ZTE pose a threat to U.S. national security based on concerns over cyber-attacks allegedly traced to China, the U.S. House Intelligence Committee has put new hurdles in front of the two emerging tech giants.

ALLEGATIONS BASED ON ILLUSIONS

In its 52-page report released Monday, the intelligence committee unreservedly leveled accusations at the two Chinese companies on no concrete evidence, arousing growing doubts among media worldwide.

Committee Chairman Mike Rogers said the panel made the conclusion based on information collected from customers of Huawei, former Huawei employees, classified sources and public media reports.

The report, however, laid bare a Cold War mentality as well as protectionism among politicians on the Capitol Hill to contain Chinese investments, which could offer new business and job opportunities for the sluggish U.S. economy.

According to the report, Huawei failed to "explain its relationships with the Chinese government" while ZTE did not "alleviate Committee concerns about the control of Chinese state-owned enterprises in ZTE's business decisions and operations".

Huawei, however, has briefed the Committee formally in Washington and received a list of questions and responded as rationally and reasonably as it could over the past 11 months.

In a statement released late Monday, the Shenzhen-based firm said the Committee appears to have been committed to a predetermined outcome and its report not only ignored Huawei's proven track record of network security in the United States and globally, but also paid no attention to the large number of facts that the company has provided.

"The report released by the Committee today employs many rumors and speculations to prove nonexistent accusations," the statement said.

ZTE has also denied and refuted the allegations made by the U.S. side.

"ZTE has set an unprecedented standard for cooperation by any Chinese company with a congressional investigation," said a statement from the Shenzhen-based ZTE on Monday.

"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," it said.

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.