BREAKING NEWS

China derides US 'Cold War mentality' towards telecoms firm

By REUTERS

NOVEMBER 10, 2012 07:03

BEIJING - The United States is exhibiting a "Cold War mentality" with its fears that Chinese telecommunications equipment manufacturer Huawei poses a security risk because of its ties to the Communist Party, China's commerce minister said on Saturday.

The US House of Representatives' Intelligence Committee warned last month that Beijing could use equipment made by Huawei, the world's second-largest maker of routers and other telecom gear, as well as rival Chinese manufacturer ZTE, the fifth largest, for spying.

The report cited the presence of a Communist Party cell in the companies' management structure as part of the reason for concern.

The state role in business prompted a US congressional advisory panel to complain this week that Chinese investment in the United States had created a "potential Trojan horse."

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