Congressional report warns of Huawei, ZTE as national security threats

If you caught 60 Minutes this weekend you might recall seeing Mike Rogers, chairman of the US Congress’ Intelligence Committee, urging American consumers to avoid purchasing products from Chinese mobile manufacturers Huawei and ZTE. Today the results of his groups 11-month investigation will be published to further detail the companies as threats to the security of our nation.

The report, of which Reuters has obtained an early look, calls into question the ties both Huawei and ZTE have to the Chinese government, and further claims both parties did not willingly cooperate with the investigation. The accusations against Huawei seem to be the strongest, with the report pointing to allegations of “bribery, corruption, discriminatory behavior and copyright infringement.”

ZTE has responded, expressing their disagreement with the findings of the committee and calling the accusations “baseless.” For two manufacturers attempting to broaden their impact in the US market, the news likely means an even greater uphill climb.

[via Reuters]

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  • http://none Cosmo UK

    It sounds like that commy geezer has an apple stuck up his butt.
    Big fan of Phandroid by the way, read everyday.

  • MIKEEEEE

    what phones aint made in china? what phones are the people in congress using?

    • CiDhed

      HTC, Nokia

    • Oldskool76

      Apple’s iPhone, and blackberries

      • Gilbert Aispuro

        All iPhone users. Why don’t they worry about company issues from the phones that they are purchasing first. Hint for dumba** congressmen and women: FOXCONN!!

  • RavenFox

    Wow! I mean why not bring our jobs back home and then I can take you seriously Mr. Congress man.

    • MIKEEEEE

      NEXUS 7 is US made.

      • CiDhed

        No, the Q is made in the USA. Nexus 7 is manufactured by ASUS in Taiwan and China.

        • Mike Reid

          Q ? What Q ? Where can I buy this Q ?

          • CiDhed

            Good point. Wish I had preordered one with my N7.

      • RavenFox

        and so is the Nexus Q and I fully support this but this man is pissing down our backs and calling it rain. US companies need to make up their mind with China. Either start investing in the country that made you rich and continue to fill your pockets or shutup. I mean does anyone really understand how US corporations are based in China? You have to allow an approved gov’t figure head to run your company.

        • ZzBallykingzZ

          ” I mean does anyone really understand how US corporations are based in China? You have to allow an approved gov’t figure head to run your company.”

          I work for a company with a manufacturing facility in Beijing, China. I’ve been there several times myself. This is BS dude! There are some unique disclosure statements you have to provide to the Chinese government but to imply it is a militaristic atmosphere with a government agent running your facility is completely false.

          I will say there is some shady business tactics you have to deal with when doing business in China. Example: Bribing government officials is normal practice there and is consider a cost of doing business in their providence. China does not have to abide by the same labor principles as the US. Underage workers are common…many supply false papers for their age. Poor work environments and poor safety are normal too.

          Our company provides many of the same standard found in our facilities in the US…but they are not required in China and we are not the norm there.

  • Canon User

    Yes, thank God U.S. companies don’t do those types of things!

  • PC_Tool

    Translation: They didn’t funnel enough campaign money through our banking system.

  • http://roadtonever.blogspot.com/ Mark Wilhelmsson

    If that were true the products would be banned already and the reason for it would be clearly stated. I’m looking forward to see any convincing evidence on what has been claimed but until then I will remain skeptic.

    • Fifth313ment

      We’ve already seen companies and software like RedBend and Carrier IQ which can silently send data from your phone anywhere and even US companies are doing it. ZTE and Huawei are deeply deeply ingrained in the Chinese government. The Chinese steal technology from computers and phones to stealth jets! You’re going to tell me if they could listen to congress or CIA phones they wouldn’t put in a method to listen or send data? If you believe that they wouldn’t you’re crazy!

      • rustygh

        Paranoid at all? Stop this brain washing
        This pure BS by the us government because they aren’t being paid
        This will hurt the us in future world economics!

  • bmg314

    Yeah, because the terms “bribery”, “corruption”, and “discriminatory behavior” are never associated with members of the U.S. Congress. O.o

    Oh, and if you are so worried about freaking China, why don’t we do something about that MASSIVE DEBT THEY HOLD ON US? >.<

    • shooter50

      why dont you vote out the current administration if you feel that way?

      • koolkat2

        Yeah, because a new one would solve everything….. Wait, this is phandroid…. Gnote2 ftw!

      • bmg314

        I do vote, and proud of it. The problem, tho, isn’t just with the current administration. It’s a culture, now.

        • RavenFox

          yup

      • peanutsrevenge

        Yes, because getting rid of that ‘stuck in his ways, out of touch, scared to let go of the status quo, corrupt’ politician for a new ‘stuck in his ways, out of touch, scared to let go of the status quo, corrupt’ politician would change……………………

  • shooter50

    Dont you guys at Phandroid communicate? Just the other day your wrote an article building up this company. Do you put any thought into these articles or just post whatever pops up?

    • koolkat2

      I think they post things that are going on in the Android world in general.

    • rustygh

      They posted hot topics not taking any side
      This post shows you don’t have a clue

      • shooter50

        really, no clue? this is the last paragraph giving the authors OPINION :
        “But if Huawei could gain more contracts in the US and release a series of great smartphones, while keeping those updates coming, I say it probably has a great shot at getting rid of its bad fame. An Android fan can dream, right? ”
        Got it? The person writing the story was dreaming of Huawei getting a foothold in this country. Thats an opinion, not repeating a story. Maybe if you were able to comprehend what you’re reading you would understand the difference.

        • peanutsrevenge

          So what are you saying?
          The previous article expressed an opinion that if they release some decent phones, they might gain market traction in the phone space. In this it’s pretty much just a news article without opinion and about telecoms infrastructure.

          I don’t see your beef at all!

  • Havoc70

    Whether this is true or not does it really matter, Huawei and ZTE are bottom of the barrel trash junk

    • Mike Reid

      All the big companies have at least some trash phones; hardware, software or both.

      Phones aren’t the issue here really. It’s more about the telecom infrastructure products these companies produce.

      That said I wonder if there will be blowback against the US carriers that have dabbled in Huawei and ZTE phones. Some might accuse them of being unpatriotic for selling “spy phones”.

  • John Wentworth

    Funny that their is not one mention of any real danger to consumers buying their products, I’m interested to see if the full report details any real security issues for consumers, so far the coverage of this seems to indicate that they don’t trust them because their chinese and they work with their government. Reminds me of some other companies, who was that? oh yes Verizon and AT&T assisting our own government with illegal wiretaps and basically buying the FCC to get rules that benefit themselves.

    • http://roadtonever.blogspot.com/ Mark Wilhelmsson

      One word: projection

      • Mike Reid

        I think more than just projection.

        IMO they are consciously aware that several large favored US companies put spying features into their products on behalf of the US government.

        It’s a spy eat spy world.

  • http://www.facebook.com/AGx07 Chris Brown-Demoreno

    Since I don’t buy from either of the two companies, I’m going to pretend like this is a stupid statement made by another stupid politician and continue buying where I please.

  • rekem

    Sounds like that South Park episode with the trojan horse Chinpokomons. I’m sure it’s a bunch of nonsense. I’d go out and buy one but don’t want to give Big Brother an excuse to spy on me any more than he already is.

    • ludist210

      “Sounds like that South Park episode with the trojan horse Chinpokomons.”

      Ha! Brilliant episode. “Time to bomb the harbor!”

  • Marsg

    blah blah, ZTE and Huawei only have low end smartphone’s here in the states anyway.

    • Manbo

      You’d be surprised at what else Huawei makes. Cellular network equipment, the towers your cellphoneconnects to is possibly made by them. In Canada, they’ve already been busted for corporate espionage… So what’s to say they aren’t working the same angles in the USA?

  • guitarist5122

    Reading through the comments really concerns me. People don’t see the threat of espionage. China is not our best friend, we are simply civil do to gain to be had on both sides.

    • rustygh

      They are kicking are butts already. Like they need to bother
      You have been brain washed

  • TimTheK

    I don’t really think this is relevant to consumer electronics. I think the reason for the investigation was to determine whether a company like Huawei should be allowed to bid on building network infrastructure in the US. And since Huawei is Chinese state owned/controlled, I think the finding is that it would be a bad idea. I don’t think it has anything to do with whether Joe Schmo in the US should buy a phone made by Huawei.

  • peanutsrevenge

    Well, I feel I owe most Americans an apology for my comment in the previous Huawei post the other day.
    I honestly thought all that propaganda crap from your government and mass media corporations would have resulted in very different comments to this article.

    It’s great (and hideous) that like many of us on this side of the pond you’re aware you’re being lied too, manipulated and stolen from, but appear powerless to change anything.

    If you have the stomach for it, might I suggest Zeitgeist Movie (free on Youtube), if you’ve not seen (you may with to skip the first chapter as you guys are more religious than us (according to our mass media).

    Once again, my apologies!

  • Ben Solomon

    This seems silly. Somewhat reminiscent of Joe McCarthy. Where is the evidence?

    • mikedo2007

      The Chinese regime has been notorious for their human right record. Remember Tianammen Square?

  • mikedo2007

    Well nice to see US is doing it right, I never trusted the Chinese regime, and a lot of time companies in China are state controlled, so we can’t trust them.