Reuters: Technology News: China rejects U.S. accusations against telcoms firms

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China rejects U.S. accusations against telcoms firms Oct 9th 2012, 12:59 Tweet Share this Email Print Related News China options limited as U.S. panel outcasts Huawei, ZTE 5:51am EDT UPDATE 2-U.S. report dashes China telecoms' expansion hopes Mon, Oct 8 2012 U.S. lawmakers seek to block China Huawei, ZTE U.S. inroads Mon, Oct 8 2012 Exclusive: Cisco cuts ties to China's ZTE after Iran probe Mon, Oct 8 2012 UPDATE 4-China's Huawei, ZTE should be kept from U.S. - draft Congress report Mon, Oct 8 2012 Analysis & Opinion China’s telco suppliers can’t escape spying row Even one-sided Chinese investment has its benefits Related Topics World » Tech » China » A man walks past a Huawei company logo outside the entrance of a Huawei office in Wuhan, Hubei province October 9, 2012. Credit: Reuters/Stringer BEIJING | Tue Oct 9, 2012 8:59am EDT BEIJING (Reuters) - China rejected on Tuesday as "groundless" U.S. accusations that two top Chinese telecoms equipment makers posed a security risk. The U.S. House of Representatives' Intelligence Committee urged American companies on Monday to stop doing business with Huawei Technologies Co Ltd and ZTE Corp., warning that China could use equipment made by the companies to spy on certain communications and threaten vital systems through computerized links. "This report by the relevant committee of the U.S. Congress, based on subjective suspicions, no solid foundation and on the grounds of national security, has made groundless accusations against China," Shen Danyang, a spokesman for China's Commerce Ministry, said in a statement on the ministry's website. The U.S. recommendation would exclude Chinese businesses from carrying out their normal operations in the United States and participating in fair competition, Shen said. "The Chinese side expresses its serious concern and strong opposition," he said. The urging by the U.S. congressional committee comes at a very sensitive time for U.S.-China relations, ahead of the U.S. presidential and congressional elections and a transition of power to a new leadership in China. It has raised fears of retaliation by China. The statement from the ministry came a day after the Foreign Ministry said that Huawei and ZTE operated according to market rules. Both companies have denied the allegations in the report. The congressional report violates the rules of the free market espoused by the United States, Shen said, adding that it was not conducive to cooperation between China and the United States. "I hope the United States will abandon the practice of discrimination against Chinese companies, act on the open principles of cooperation to earnestly create a fair and equitable market environment for the businesses of the two countries, and promote the smooth development of Sino-U.S. bilateral economic and trade cooperation," Shen said. (Reporting by Sui-Lee Wee; Editing by Robert Birsel) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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