China opposes U.S. report about Chinese telecom firms

China's Commerce Ministry announced Tuesday it "strongly opposes" a report that alleged Chinese telecommunication companies Huawei Technologies Inc. and ZTE Corp. posed national security threats in the United States.

The U.S. report, based on "subjective guesswork" and "untrue evidence," used national security as an excuse for blocking Chinese companies from fair competition in the U.S. market, said Shen Danyang, a ministry spokesman.

A U.S. congressional investigation report released Monday said Huawei and ZTE were potential security threats and recommended the U.S. government not use any equipment from the two firms in its computer systems.

Shen said the move by the U.S. side violated its long-held free market principle and would undermine investment and cooperation between the two countries' companies.

"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," Shen said.

The U.S. 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.

Huawei and ZTE, both based in Shenzhen in southern China, denied the allegations and accused the United States of obstructing Chinese companies from entering the overseas market.