China rejects U.S. accusations against telcoms firms

BEIJING Tue Oct 9, 2012 8:59am EDT

A man walks past a Huawei company logo outside the entrance of a Huawei office in Wuhan, Hubei province October 9, 2012. REUTERS/Stringer

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

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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)

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Comments (5)
DeanMJackson wrote:
All actions of the Chinese Communist Party and government must be analyzed through the prism of the “Long-Range Policy”, the “new” more subtle strategy all Communist nations signed onto in 1960 to defeat the West with, as first revealed to the West by KGB defector Major Anatoliy Golitsyn, the only Soviet-era defector to still be under protective custody, proving (1) the collapses of the USSR/East Bloc were strategic ruses; and (2) that all other Soviet-era defectors who followed Golitsyn were still loyal to their respective Communist intelligence agencies, since all of them provided incorrect intelligence on the future of the USSR/East Bloc.

When the Communist government in Beijing “collapses”, Taiwan will be stymied from not joining the mainland.

The “dissident” movement in China (as in the USSR) is a creation of Beijing, its existence intended to instill in Western minds that the Communist government/party has competing factions, with one faction being the “reformist” faction that allows for “dissidents” being known to the West. With millions of government agents that infest every aspect of Chinese life, from urban centers to rural villages, nothing happens in China that isn’t cleared by Beijing.

“Behind the impressive smokescreen of pseudo-democracy, pseudo-capitalism and pseudo-reform, this Russian-Chinese ‘cooperation-blackmail’ strategy is irreconcilably hostile to the West. Again, this is no mere presumption. It was explicitly confirmed in May 1994 to Clark Bowers, a member of an official US Republican delegation to Peking, by Mr Mo Xiusong, Vice Chairman of the Chinese Communist Party, who is believed to be the highest-ranking Chinese Communist official ever to have answered questions put to him by a knowledgeable Western expert on Communism:

BOWERS: Is the long-term aim of the Chinese Communist Party still world Communism?

Mo XIUSONG: Yes, of course. That is the reason we exist.”

-– “The Perestroika Deception” (1995), by KGB defector Major Anatoliy Golitsyn.

Oct 09, 2012 9:41am EDT  --  Report as abuse
This is nothing but a play on commis mindset of Americans. China assists Baidu and other Chinese companies by making it difficult for Google to operate on the pretext of censorship. US is doing the same to help Cisco by saying Huawei and ZTE are spying.

Politics aside, it is all about economic war. Nobody nowadays care about the stupid ideology of comm or democracy. US democracy is not a real democracy as it has a taint of socialism and autocracy in certain laws. Chinese communism is a joke anyway with all the capitalistic grab it all.

Oct 09, 2012 12:28pm EDT  --  Report as abuse
pouncep wrote:
@DeanMJackson
A simple search in Google will reveal that the post of the Vice Chairman of the Communist Party ceased to exist after 1982.
http://en.wikipedia.org/wiki/Vice_Chairman_of_the_Communist_Party_of_China
Who is this Mo Xiusong you speak of?
In the end, it’s all just business.

Oct 09, 2012 2:42pm EDT  --  Report as abuse
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