Huawei and ZTE pose security threat, warns U.S. panel

  • Chinese telecom firms Huawei and ZTE pose a security threat to the U.S., a congressional panel has warned following an investigation into the two companies.

    In a report due to be released later in the day, the panel has recommended that the two firms be barred from any mergers and acquisitions in the US.

    "China has the means, opportunity and motive to use telecommunications companies for malicious purposes," the committee said in its report.

    "Based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems."

    It added the firms had failed to ease doubts about their association with the Chinese government and military.

    Huawei and ZTE are among the world's biggest makers of telecom networking equipment.

    Both firms have previously denied the allegations.