USA security concerns could stall Huawei's and ZTE's 5G expansions

USA security concerns could stall Huawei's and ZTE's 5G expansions”

In related news, a pair of U.S. Representatives recently introduced a bill that would effectively bar the U.S. government from using Huawei or ZTE smartphones at all and from contracting work from either company.

The US government has also blocked a string of Chinese acquisitions over national security concerns, including Ant Financial's proposed purchase of US money transfer firm MoneyGram.

US lawmakers are advising companies from the USA that if they have any ties with China Mobile or Huawei, it could hurt their chances of doing business with the government.

Huawei and Chinese telecom firms have long struggled to gain a toehold in the USA market, partly because of US government pressure on potential US partners. But it compounds the notion that Huawei is bad news for the U.S., which will be particularly disappointing to its mobile division lead Richard Yu, who spoke on stage about the company's commitment to security at CES only a few days ago. -China Economic and Security Review Commission told Reuters.

The "commercial ties" that US Senate and House members want AT&T to cut include collaboration with Hauwei for 5G technologies as well as its selling of Huawei phones via Cricket.

The news agency quoted Chinese foreign ministry spokesman Lu Kang as saying he did not know anything about the matter, but hoped that China would be given a fair operating environment in other countries.

AT&T is working with Huawei in at least two different areas, the first of which is on standards for AT&T's planned 5G network.

It was allegedly this same pressure, along with some warnings from federal regulators, that forced AT&T to abandon its deal with Huawei to bring its mid-range mobile handsets over to the U.S.

The federal government also blocked a series of acquisitions by Chinese companies over concerns of national security including the proposed purchases by Ant Financial of USA based money transfer business MoneyGram International.

Only a week earlier at the CES trade show in Las Vegas, Richard Yu, CEO of Huawei's consumer business group, took the stage expected to announce AT&T as the USA carrier partner for Huawei's flagship Mate 10 Pro smartphone that is being released in the United States.

In recent years, both companies have been investigated for breaking US laws: Huawei has been accused of assisting an alleged elite cyberwarfare unit of China's army, as well as bribery, corruption, and immigration violations, while ZTE pled guilty to selling sanctioned computer equipment to Iran, and allegedly obstructed an investigation into the sales.

US lawmakers do not want China Mobile to be given a license to do business in the United States, the congressional aides said.

Over the past few months, AT&T has been developing a close business relationship with Huawei.

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