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US bomb-complex urges search over Huawei

Apr 29, 2012 News

 

–    company running fibre-optic cable in Guyana

A U.S. congressional panel has approved a measure designed to search and clear the U.S. nuclear-weapons complex of technology produced by Chinese telecommunications companies that have been accused of working closely with China’s government and military.
One of those companies is Huawei, which received a US$14 million contract to install a fibre-optic cable from Brazil to Guyana.
U.S. Commerce Secretary John Bryson dealt Huawei a severe blow in a March 20 testimony to the House Appropriations Commerce-Justice-Science subcommittee.
“It appears that Huawei has capabilities that we may not fully detect to divert information,” Bryson said. “It’s a challenge to our country.”
The contract award to Huawei here was criticised, largely because of the company’s US$50,000 “gift” to then Bharrat Jagdeo government. The money was used to buy laptops under the One Laptop Per Family Project, but the source of the funding was only made clear after concerns were raised in the media.
New agency Reuters reported yesterday that if passed into law, the measure adopted Thursday by the US-congress could be a fresh blow to Huawei Technologies Co. Ltd and ZTE Corp in their efforts to overcome U.S. national security concerns that have stymied them in the lucrative U.S. market.
Huawei and ZTE were singled out by name in the measure, adopted by the Republican-led House of Representatives’ Armed Services Strategic Forces subcommittee, as part of the 2013 defense authorization bill, Reuters reported.
The full House Armed Services Committee is to consider the legislation on May 9. It will have to be reconciled with a companion bill expected to be taken up next month by the Armed Services Committee in the Democratic-led Senate.
The House panel’s measure would order the secretary of energy, in consultation with U.S. counter-intelligence, to report to congressional committees that oversee defense issues by August 31 on risks to the department’s information-technology supply chain.
The measure calls for special attention to the department’s bomb-building enterprise and a determination on whether the department, or any of its big contractors, has “a supply chain that includes technology produced by Huawei or ZTE Corp.”
It also calls for procedures to curb supply-chain risks, as recommended last month by the Government Accountability Office.
Huawei is the world’s largest maker of telecommunications equipment after Sweden’s Ericsson. ZTE, a Shenzhen, China-based crosstown rival, is the fifth-ranking provider.
A document drafted for the House panel maintained that Huawei and ZTE had been, and would likely continue to be provided with “billions of dollars in Chinese government support,” a charge the companies deny.
Recently, Huawei announced that it was looking to fill over 20 vacancies in Guyana. The company advertised for wireless engineers, site engineers for civil works, core engineer, transmission network engineers, datacom engineers and data centre engineers among other posts.
Local economists had suggested that Huawei’s gift after being awarded the job for the fibre-optic cable was unethical and that in some other countries the company would have been made to face the law.

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