ZTE, Huawei face scrutiny in U.S.

By He Shan
0 CommentsPrint E-mail China.org.cn, November 1, 2010
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Following Huawei, Chinese telecommunications equipment maker ZTE becomes the second Chinese company to come under scrutiny from the US government because of its ties to the Chinese government and military, according to a foreign report.

On Oct. 19, four US lawmakers sent a letter to Federal Communications Commission (FCC), urging it to investigate ZTE and Huawei on the grounds of national security, and to impose limitations accordingly.

ZTE, the world's sixth largest telecom supplier, said it is not a threat in response to US security concerns.

A ZTE senior official said the company plans to build a plant in the US within one or two years, and will allow a third party to monitor its hardware and software, and it is willing to provide its software codes to US department, as part of its efforts to dispel their worries.

At the same time, ZTE is negotiating with US officials to manage the situation.

"We are under unfair scrutiny, so the central challenge facing us in the American market is how to make us known to them," said Cheng Lixin, chief executive for ZTE's business in North America.

China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.

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