The heads of six major U.S. intelligence agencies have warned private citizens of the United States against using products and services offered by Huawei and ZTE, its fellow telecom company based out of China.
The intelligence chief told the Senate Intelligence Committee on Tuesday that American telecom companies should be cautious of Chinese technology companies that have links with foreign governments. Now CNBC reports that U.S. security chiefs are recommending against buying Huawei phones but also ZTE phones.
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"With over $100 billion in Chinese Government subsization and direct financing, Huawei is able to offer unsuspecting USA businesses low-priced offers hard to refuse in exchange for access to US networks".
Wray expressed concern that such companies could gain a position of power within the nation's telecommunication system. Some of the downsides Wray covers are things like undetected espionage, or the capacity to "exert pressure or control over our telecommunications infrastructure".
Texas Representative Mike Conaway introduced a bill last month that would prohibit the U.S. government from purchasing and using "telecommunications equipment and/or services", from Huawei and ZTE, which he says pose a threat to national security.More news: Truly best in show: Westminster victor making Broadway debut
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As alarming as this sounds, this isn't something new for Huawei, which has been trying to enter the USA market for a while now.
In addition, US Lawmakers are considering a bill to ban government employees from using Huawei and ZTE phones completely.
Huawei has since responded to these allegations in a statement which reads, "Huawei is aware of a range of US government activities seemingly aimed at inhibiting Huawei's business in the USA market".
The letter closely echoed the statements of an angry Richard Yu on stage last month at CES.
This is in line with a recent Bloomberg report, which said that Verizon has dropped plans to sell Huawei phones in the US due to pressure from the government.
"This is a challenge I think that is only going to increase, not lessen over time for us", Adm. Michael Rogers, the NSA director reportedly said.