U.S. business leaders continue to react to a U.S. Congressional report released Monday telling American companies to stop doing business with two of China s largest telecommunications companies. Within 24 hours of the publication of this U.S. Congressional report accusing Huawei and ZTE of economic espionage the Chinese Commerce Ministry fired back The U.S. report is based on subjective guesswork and untrue evidence said Shen Danyang Commerce Ministry spokesperson. He went on to say the move would undermine investment and cooperation between the two nation s companies. Ted Moran has served on Huawei s International Advisory Council for three years. I think more openness and more transparency are in their interests and that s what I and other international advises tell them he said. Moran said that because the telecommunications supply chain is so global banning business between Chinese and American companies will not eliminate all security risks. This report didn t seem to recognize the fact that this might provoke tit-for-tat responses on the part of other countries. And our companies don t want to be discriminated against just the way Huawei doesn t want to be discriminated against he said. At least six U.S. companies located in five states sell components to Huawei. The company also has seven research and development centers in the United States employing around 1700 people. Meantime at least three American companies - Extreme Networks Juniper and Cisco - have contracts in three Chinese provinces to work on critical infrastructure projects. U.S. trade analyst Ed Gerwin said national security concerns are a long-standing part of the U.S.-China trade relationship. China does have a series of restrictions on investment that many U.S. companies complain about and many of those are justified by the Chinese based on national security he said. When business gets this close to national security he said the real solution lies at the government level The only way we re going to solve these trade problems is to establish better rapport from a national security standpoint so the two governments have better trust in each other. Gerwin pointed out that national security restrictions aren t subject to international trade regulation under the WTO for example leaving the burden of proof on the companies - in this case - Huawei and ZTE - that want to make the investment. Two other countries - India and Australia - have prevented Huawei from supplying equipment for critical infrastructures based on similar security concerns. More downloads available at httpnewscontent.cctv.com Copyright CCTV For any questions please call 86-10-63969499 or email cctvnewscontent.cctv.com If you want to learn more please go to the CCTV website at www.newscontent.cctv.com

• published: 31 Oct 2013
• views: 0