Take Two for October 8, 2012

House Intelligence Committee finds security threat in two major Chinese telecom companies

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A visitor walks out from the entrance to the Huawei office in Wuhan, central China's Hubei province on October 8, 2012. Beijing on October 8 urged Washington to 'set aside prejudices' after a draft Congressional report said Chinese telecom firms Huawei and ZTE were security threats that should be banned from business in the US.

According to a report released this morning by the House Intelligence Committee, some of the biggest threats to national security today comes from two Chinese telecom companies.

A year long investigation found that Huawei and ZTE - two of the world's leading suppliers of telecommunications gear and mobile phones - has the means and the motive to spy on the US.

A U.S. executive of one of the companies said the firm cooperated with investigators, and defended its business record. Huawei is a "globally trusted and respected company," said William Plummer, vice president for external affairs.

On Monday, ahead of the report's release, a Chinese foreign ministry spokesman said investment by China's telecommunications companies in the United States showed the countries have mutually beneficial relations.

"We hope the U.S. will do more to benefit the interests of the two countries, not the opposite," said spokesman Hong Lei at a regular briefing.

Alex Cohen talks with Spencer Ante of the Wall Street Journal for more on this.


With contributions by AP

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