Tuesday, October 9, 2012

2 Chinese Telecoms Raise Spying Concerns, U.S. Congress Says

State Espionage

An article in the National Post says that the United States Congress' Intelligence Committee has said that American businesses should not conduct business with two major Chinese telecom companies—Huawei Technologies Co Ltd. and ZTE Corp.— for reasons that centre on state espionage.
U.S. telecommunications operators should not do business with China’s top telecom gear makers because potential Chinese state influence on the companies poses a security threat, the U.S. House of Representatives Intelligence Committee said in a report on Monday. The report follows an 11-month investigation by the committee into Huawei Technologies Co Ltd and ZTE Corp. The companies have been fighting an uphill battle to overcome U.S. lawmakers’ suspicions and expand in the United States after becoming key players in the worldwide market.
The House Intelligence Committee’s concerns are bound to set back the companies’ U.S. prospects and may also lead to strains in ties between the United States and China, the world’s two biggest economies.
Committee Chairman Rogers, at a press conference to release the report, said the panel was stopping short of urging a U.S. boycott of mobile phones and other handheld devices made by Huawei and ZTE.
Espionage has existed for centuries. When there is a notable and leading technological nation like the United States, it becomes a target of many spy agencies and their proxies. It is both right and normal for a nation like the U.S. to protect its interests. That being the case, there has long been a suspicion that a rising and powerful economic nation like China has not ruled out state espionage to get its hands on intellectual property, pragmatically deciding to use legitimate private enterprises as a conduit to gain sensitive technological information.

Of course this is both illegal and immoral; each year, nations like the U.S. spend hundreds of billions of dollars on scientific research and development. It's only right that the U.S. should not make it easier for nations like China to illegally obtain technology that is not rightfully theirs. It would be prudent that my country, Canada, also heed the advice of the U.S. Intelligence Committee.

You can read the U.S. Intelligence Committe's report here & the rest of the article at [National Post]

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