China Reacts to U.S. Concerns About Chinese Telecoms

Chinese authorities reacted to a U.S. Congressional report that warned Chinese telecom companies, Huawei and ZTE, could pose a threat to U.S. national security. The Washington Post reports "Chinese authorities dismissed the charge as “groundless” and suggested it could undermine future cooperation between the world’s two largest economies, which are both deeply entwined and increasingly competitive across a range of businesses."

The report warns that Chinese companies can be co-opted easily by the Chinese government, and that computers and software provided by these Chinese companies may allow the Chinese government "backdoor" access to the computers. That access is required in order to update the software and operating system of the computers, but the two telecom companies say it would be corporate suicide to allow the Chinese government access to these update mechanisms. 

Congressional investigators say they plan to turn over evidence of Chinese espionage, and that these companies should be barred from acquisitions and mergers in the United States.

image: www.acus.org