The US House of Representatives' Intelligence Committee has warned that it would consider blocking sales of ZTE and Huawei products, due to ongoing security concerns regarding the two companies' links to the Chinese government.
The committee issued the warning as part of a draft report set to be released on Monday. The report is based on an 11-month investigation into the two companies, conducted by the committee.
The committee began investigating the Chinese firms after allegations from a number of unnamed sources emerged accusing the two of helping the Chinese government mount cyber espionage campaigns.
Committee chairman Mike Rogers said that following the investigation, the department was left with concerns regarding the potential threat posed by ZTE and Huawei.
"Huawei and ZTE provide a wealth of opportunities for Chinese intelligence agencies to insert malicious hardware or software implants into critical telecommunications components and systems," said Rogers in his opening address.
"Under Chinese law, ZTE and Huawei would likely be required to co-operate with any request by the Chinese government to use their systems or access for malicious purposes."
Rogers added that the committee's concerns were compounded by ZTE's and Huawei's lack of cooperation during the investigation.
"In the course of the investigation, the committee has been disappointed that the companies provided little actual evidence to ameliorate the committee's concerns," said Rogers.
"In particular, they did not provide documentation supporting or confirming their claims about their formal relationships or regulatory interaction with Chinese authorities, corporate structure, ownership, operations, or management."
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