Huawei and ZTE are going to face a much tougher path in the U.S. smartphone market as the U.S. House of Representatives Intelligence Committee said the companies represent a security threat.?
The report comes after an 11-month investigation and it contains many damning conclusions for Huawei and ZTE. Basically, the report finds that the telecommunications space is so crucial to the nation's security and it's unclear whether Huawei and ZTE are connected to the Chinese government in a way that could potentially jeopardize national security.?
"Based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and our systems," the report said.
Along with smartphones for Verizon, T-Mobile, Sprint and others, Huawei and ZTE also create a lot of networking equipment. That sort of core telecom networking equipment is probably of more concern to the U.S. government than smartphones, I'd imagine.?
As you would expect, Huawei and ZTE do not agree with the report's finding.?
"Huawei has not and will not jeopardize our global commercial success nor the integrity of our customers' networks for any third party, government or otherwise," Huawei's Charles Ding said, according to Reuters.
It's unclear what this will mean for the future prospects of Huawei and ZTE over the next few years, but this can't be a good thing. It's kind of a shame too, as Huawei, in particular, has been making great improvements to its smartphone lineup. We reviewed its Huawei Ascend P1?and thought it portended great things for its next generation of devices.
[Reuters, House Press release]
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Source: http://www.knowyourcell.com/news/1624705/huawei_zte_labeled_security_threats_by_us.html
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