US blackballs Huawei over security risks

City A.M. Reporter
US companies should avoid doing business with China’s Huawei, the world’s second-biggest maker of telecommunications gear, for fear its equipment could open doors for spying, the head of the US House of Representatives’ Intelligence Committee said.

“If I were an American company today ... and you are looking at Huawei, I would find another vendor if you care about your intellectual property; if you care about your consumers’ privacy and you care about the national security of the United States of America,” chairman Mike Rogers said.

The Michigan Republican, a former FBI special agent, made his comments to the CBS television programme 60 Minutes, broadcast last night. This morning, the Intelligence panel will release the findings of a nearly year-long investigation of the alleged security risk, both from Huawei Technologies and China’s ZTE.

Earlier this year Huawei was in the running for a contract to instal 3G phone and data services throughout the London Underground system, but TfL opted not to implement its scheme.

Last month Huawei pledged to invest $2bn (£1.2bn) in its British operation, creating about 700 new jobs in the next five years.