Oct 192012
 
 October 19, 2012  Non-U.S., Surveillance

It hasn’t been a great year for ZTE in the U.S. In May, the Chinese telecom manufacturer confirmed that a vulnerability in one of their phones sold in the U.S. market left the phone vulnerable to takeover by others. Now Jeremy Wagstaff of Reuters reports that a recent Congressional investigation of ZTE and Huawei has led the former to sell off a subsidiary that sells surveillance systems:

The decision to dispose of ZTE Special Equipment Co, also known as ZTEsec, was made on September 21, during a U.S. Congressional committee investigation into ZTE and its local rival Huawei Technologies Co Ltd.

The Congressional committee recommended to the U.S. government that Huawei and ZTE should be kept from the U.S. market and told U.S. companies to stop doing business with both firms.

The committee’s report, published on October 8, said it “cannot allay concerns that ZTE is aligned with Chinese military and intelligence activities or research institutes.” ZTE has denied any such links.

Read more on Reuters.

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