Chinese telecom giant Huawei: So long, American market
Last year a report from the House Intelligence Committee said increased integration and reliance with Chinese telecommunications firms constituted a national security threat. Why? Persistent allegations that, where companies like Huawei and ZTE Corp. go, the People's Liberation Army goes with them.
No solid evidence has tied these companies to security breaches so far -- and a White House review, released just a week after the Intelligence Committee's study, cleared Huawei of wrongdoing. But cybersecurity worries coming out of China flared recently following a February report that Chinese military hackers have been plumbing the networks of hundreds of private American companies. And in response, a new law restricting the government's ability to purchase IT equipment from China was tucked into a federal funding bill in March.
Huawei has decided to focus on expanding in Europe to pave its way into developing markets after experiencing difficulties in the U.S. market, and also has no intention of listing in the near future.
"We are not interested in the U.S. market anymore," the company's executive vice president Eric Xu, said at the company's annual analyst summit in Shenzhen, China on Tuesday.
As we've noted before, there's little telecommunications manufacturing left in the United States. And that's a national security risk all on its own.
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