London, Oct 8: Two top Chinese telecom firms face closure in the US over threat to America’s national security, The Telegraph reported Monday.
The House Intelligence Committee has warned that American companies should avoid doing business with Huawei Technologies Ltd. and ZTE Corp.
The Chinese firms are among the world’s leading suppliers of telecommunications gear and mobile phones.
Reflecting US concern over cyber-attacks traced to China, the committee’s report also recommends that US government computer systems not include any components from the two firms because that could pose an espionage risk.
“China has the means, opportunity, and motive to use telecommunications companies for malicious purposes,” the report said.
The recommendations are the result of a year-long probe, including a congressional hearing last month in which senior Chinese executives of both companies testified, and denied posing a security threat, according to the newspaper.