Chinese firms Huawei and ZTE are under fire from US lawmakers, with the House Intelligence Committee branding the two companies as potential espionage weakspots for the Chinese government. “China has the means, opportunity, and motive to use telecommunications companies for malicious purposes” the bipartisan-authored report warns, recommending that companies in the US should avoid using either Huawei or ZTE hardware, and that mergers and acquisitions by the firms should be blocked by US regulators. Unsurprisingly, the accusations have been met with outrage from the rising Chinese tech companies.

Huawei and ZTE have each denied being financed by the Chinese government or military, or indeed providing information about international customers to intelligence agencies in their home country. Speaking on behalf of Huawei, spokesperson William Plummer described the accusations as “baseless” and said that the company “has a well-demonstrated track record of responsibly adhering to local laws and regulations in the markets in which it does business.”

“ZTE equipment is safe” director of global public affairs David Dai Shu said of the claims, pointing out that “ZTE has set an unprecedented standard for cooperation by any Chinese company with a congressional investigation.”

Read more at SlashGear

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