China syndromeHuawei rejects U.S. “threat to national security” claims

Published 6 December 2012

In October the United States House Intelligence Committee issued a report warning U.S. companies against using two Chinese companies, Huawei and ZTE, for their telecommunication technology needs; the report said that the firms may be too close to China’s Communist Party and its military’ the report also suggested their products and services could pose a threat to the security of the United .States; Huawei vigorously disputes both claims

In October the United States House Intelligence Committeeissued a report warning U.S. companies against using two Chinese companies, Huawei and ZTE, for their telecommunication technology needs.

The report implied that the firms may be too close to China’s Communist Party and its military. The report also suggested their products and services could pose a threat to the security of the United States.

Chen Li Fang, a senior executive and Huawei board member, told the BBC that Huawei should not be looked at in a suspicious way because it operates in China.

We totally understand concerns about cybersecurity,” Fang said. “But if any congressman or woman raises concerns or fears because a company originates in a particular country, I don’t think that would be fair.”

Huawei was founded in 1987 by a former officer in China’s People’s Liberation Army (PLA). Since then the company has grown quickly and now has more than 140,000 employees around the world. The main focus of Huawei is becoming a major player in the telecoms infrastructure industry, making equipment for 3G and 4G networks. The company is currently expanding into mobile broadband networks for smartphones and tablets.

Fang said the company is determined to become a household name and sees itself as a business model for other companies in China.

Huawei might not be famous now,” he told the BBC. “But three billion people are using our products either directly or indirectly.”

The company is still trying to get into the U.S. market, but it  has become a well known company in the United Kingdom. In September, Ren Zhengfei, the company’s founder announced a £1.3 billion investment in the firm’s U.K. business.

According to the BBC security correspondent Gordon Corera, the U.K. Intelligence and Security Committee, led by former Foreign Secretary Sir Malcolm Rifkind, also has their concerns and is currently investigating Huawei to better understand what potential risks there may be and what measures will be needed to take care of them.

The UK’s relationship with Huawei has been a sensitive issue for a number of years,” Corera told BBC.”But British officials argue they have found a way to work with Huawei and establish a working level of trust.”

In China accusations of foul play against Huawei have been met with anger and some officials have said that the U.S. is attempting to sabotage the company in an effort to protect its own position in the telecom industry against competition.

The U.S. and U.K. concerns are not unique. Many countries are taking  precautions because most cyberattacks on infrastructure,  government departments, and private companies  originate in China. Australia recently barred Huawei from a role in building its national broadband network, saying it was important to maintain the security of its vital infrastructure.

Ron Raffensperger, an American who is now a senior engineer for Huawei’s Shenzhen headquarters, told the BBC that “It’s all based on misunderstandings and a lack of trust.

There’s a reason so many of the companies around the world use us, and it’s not because we’re cheap, it’s because we do really good stuff.”