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Friday, September 21, 2012

United States against Huawei

United States is again against the communications giant over concerns that the company presents a threat to national security. The matter is that Huawei positions itself for more business in the west.
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The meeting is scheduled to take place between the US House of Representatives Intelligence Committee, the executives from Huawei, and the representatives from its rival ZTE. The plan of the meeting is to scrutinize the strategy of expanding their businesses.

American lawmakers are concerned that either communication giant could pose a potential security risk in supplying communications equipment to the Chinese companies, especially taking into account the fears over the supposed Chinese government background of the privately owned Huawei. As such, the investigation will be finished in early October.

Huawei and ZTE, the 2nd and 4th largest telecommunications companies in the world respectively, are to be asked to provide extensive data about their internal corporate structures and all ties to the Chinese government.

Both corporations have long been viewed with suspicion by the United States, so the public hearing might go some way to breaking the ice and letting them to expand business in the US. In the meantime, when Huawei bought American company 3Leaf, this move was stonewalled following suspicion from the local government.

Nevertheless, the Chinese giant has been vocal about its innocence, claiming that all security concerns were allegations based only on allegations. At the same time, the company has had less trouble breaking into the British market. For instance, David Cameron "welcomed" the £1.5 billion investment in the country a few days ago. Last year, the corporation also employed a former British government security expert as head of its cyber security.

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