Two Chinese Telecoms Deny Spying; House Report Cites ZTE Corp, Huawei as Cyberprobe Suspects

The Washington Times (Washington, DC), October 9, 2012 | Go to article overview

Two Chinese Telecoms Deny Spying; House Report Cites ZTE Corp, Huawei as Cyberprobe Suspects


Byline: Shaun Waterman, THE WASHINGTON TIMES

Equipment made by the two biggest Chinese telecommunications manufacturers secretly sends data back to China and has flaws that allow hackers to infiltrate computer and phone networks, according to details of a scathing new congressional report issued Monday.

The two companies u Huawei Technologies Ltd. and ZTE Corp. u also breached U.S. law, including sanctions and anti-bribery statutes, states the report, the result of an 11-month investigation by staff of the House Select Committee on Intelligence.

Officials from the two firms once again strongly denied charges they had aided BeijingAEs cyberspying efforts, with Huawei Vice President William Plummer telling the Xinhua news agency that the latest accusations were dangerous political distractions.

The report released by the committee today employs many rumors and speculations to prove nonexistent accusations, the Shenzen-based company said in a statement.

The Chinese Foreign Ministry also weighed into the debate, with spokesman Hong Lei denying the U.S. charges and defending the practices of the countryAEs telecommunications industry.

We hope the U.S. Congress can respect the truth and overcome biases so as to boost bilateral economic and trade cooperation, and not the reverse, he told reporters in Beijing.

The House committee report recommended that government equipment should not include components made by Huawei and ZTE, the administration should use national security powers to block any mergers or takeovers they attempt, and U.S. firms should not do business with them at all.

Rep. Mike Rogers, the committeeAEs chairman, said using these companiesAE equipment and services in U.S. telephone or computer networks undermines the core U.S. national security interests.

As a majority of U.S. networks are run by private companies, we recommend that private network providers find other vendors. Government systems and contractors should also exclude these companiesAE products as well, the Michigan Republican said Monday.

Huawei and ZTE are among the top global suppliers of telecommunications equipment, and high-speed mobile telephone and Internet hardware.

The report, without giving any details, says investigators found examples of beaconing u a hidden component inside a network secretly broadcasts to an outside computer.

It could be a router [that] turns on in the middle of the night and starts sending back large data packs, and it happens to be sent back to China. ThatAEs unusual, said Mr. …

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