US report catalyst for complaints against Huawei, ZTE

The following a report released by the House of Representatives Intelligence Committee, the panel has received "dozens and dozens" of complaints -- which has prompted further investigation into Huawei and ZTE's business practices.

Chinese telecom equipment makers Huawei and ZTE have come under fire after being accused of being a security risk -- apparently after the Chinese military obtained equipment produced by the firms that can be used to spy on sensitive information or potentially breach networks.

The congressional report was released Monday after an 11-month investigation, which urged U.S. firms to abandon Huawei and ZTE as well as recommending that government contractors do not work with either firm.



Complaints received by congress panel have come from current and former employees who are reporting "suspicious equipment behavior".

According to the publication, these allegations chiefly involve Huawei.

Both telecom equipment manufacturers reject the accusations. China's Commerce Ministry has joined the fray, saying that the U.S. committee has "made groundless accusations against China." The main report does not reveal any concrete evidence against either firm, but a classified index hosts "significantly more information adding to the committee's concerns".

This is not the end of Huawei's problems. In March, Australia barred the company from seeking contracts for its National Broadband Network -- citing cybersecurity concerns -- and this week, Canada has indicated it may exclude Huawei from participating in a project to build a secure governmental communications network.