U.S. labels Chinese telecom giants a security threat

In a damning report released Monday, the U.S. House Intelligence Committee called China's Huawei Technologies — the world's second-largest telecommunications equipment supplier — and ZTE Corp, another huge telecom manufacturer, threats to national security, and urged the U.S. government to avoid using products from the two companies. The U.S. is one of the few markets where Huawei hasn't been able to expand. "Whether Huawei can penetrate the critical U.S. market... will determine the rate of the Chinese technology giant's overall growth." China has become a central part of the battle for the U.S. presidency, with both President Obama and GOP nominee Mitt Romney speaking "against what they say are unfair trade practices and currency manipulation by Beijing." Both Huawei and ZTE denied the allegations made in the report.



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