US House of Intelligence Committee Warn American Companies Doing Business with Huawei & ZTE

US House of Intelligence Committee Warn American Companies Doing Business with Huawei & ZTE

Though US is very much advance and updated on cyber security but after facing so many large cyber attacks from China, now American government taking few steps to avoid any kind of cyber espionage. Recently the US House Intelligence Committee says that the American companies should avoid doing business with two of China's leading technology firms, ZTE and Huawei. Many of us will not agree with this decisions  but while keeping in mind latest cyber attacks and damages, the authorities have no other way left. 
The Chairman and Ranking Member of the House Intelligence Committee, Mike Rogers (R-MI) and C.A. Dutch Ruppersberger released a report recommending to U.S. companies considering doing business with Chinese telecommunications companies Huawei and ZTE to find another vendor.  The report encourages U.S. companies to take into account the long-term security risks associated with either company providing equipment or services to our telecommunications infrastructure.  Additionally, the report recommends that U.S. government systems, particularly sensitive systems, exclude Huawei or ZTE equipment or component parts. The report highlights the interconnectivity of U.S. critical infrastructure systems and warns of the heightened threat of cyber espionage and predatory disruption or destruction of U.S. networks if telecommunications networks are built by companies with known ties to the Chinese state, a country known to aggressively steal valuable trade secrets and other sensitive data from American companies.  Additionally, the report notes that modern critical infrastructure is incredibly connected, everything from electric power grids to banking and finance systems to natural gas, oil, and water systems to rail and shipping channels. All of these entities depend on computerized control systems. The risk is high that a failure or disruption in one system could have a devastating ripple effect throughout many aspects of modern American living.
The report, released in a Capitol Hill news conference, states that Huawei and ZTE provided incomplete, contradictory, and evasive responses to the Committee’s core concerns.  The report comes after a year-long investigation into the national security dangers posed by Huawei and ZTE, the two largest Chinese telecommunications companies doing business in the United States.

The Report Includes Five Recommendations:-
  1. US government systems and US government contractors, particularly those working on sensitive systems, should exclude any Huawei or ZTE equipment or component parts.  Additionally, the Committee on Foreign Investments in the United States (CFIUS) must block acquisitions, takeovers, or mergers involving Huawei and ZTE given the threat to U.S. national security interests.
  1. U.S. network providers and systems developers are strongly encouraged to seek other vendors for their projects.
  1. Unfair trade practices of the Chinese telecommunications sector should be investigated by committees of jurisdiction in U.S. Congress and enforcement agencies in the Executive Branch.  Particular attention should be paid to China’s continued financial support of key companies.
  1. Chinese companies should quickly become more open and transparent. Huawei, in particular, must become more transparent and responsive to U.S. legal obligations.
  1. Committees of jurisdiction in Congress should consider potential legislation to better address the risk posed by telecommunications companies with nation-state ties or otherwise not clearly trusted to build critical infrastructure, including increasing information-sharing among private sector entities and expanding a role for the CFIUS process to include purchasing agreements.

To Download the Full 60 Page Report Click Here


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