A U.S. Congress report, due to be released this morning, accuses Huawei and ZTE of being a risk to security. The U.S. House Committee Report claims a refusal from the two Chinese firms to provide sufficient proof that they are not linked to their country's military and government, and should be prevented from any mergers and acquisitions in the U.S.
"China has the means, opportunity and motive to use telecommunications companies for malicious purposes," says the report. "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 to our systems."
Both firms strenuously deny the accusations, with Huawei VP William Plummer stating that the firm's integrity and independence was "trusted and respected across almost 150 markets," and that the accusations were politically motivated.