We have seen our fair share of handsets from Chinese phone manufacturers Huawei and ZTE (granted, they make more than just phones but that’s besides the point at the moment) in the past, but it seems that not all is a bed of roses with them when it comes to relations in the US. The House of Representatives’ Intelligence Committee are about to release a report which specifically requested that both Chinese telecoms kit-makers to be banned from any mergers and acquisitions in the US, as well as to be blocked from carrying out business deals with government and private firms in the US.
The reason? Both Huawei and ZTE posed a security threat. While we do not see their names plastered everywhere, Huawei actually holds the position of being the second-largest telecoms equipment vendor in the world, right behind Ericsson, with ZTE taking fifth spot. What do you think of this recommendation? Will companies in the US take heed of this and avoid all business transactions with them, if it were possible?
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