News Summary: US panel warns on China tech threat

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TECH SECURITY THREAT: American companies should avoid sourcing network equipment from China’s two leading technology firms because they pose a national security threat to the United States, the House Intelligence Committee warned. The report recommended that U.S. government computer systems also not include any components from the two firms because that could pose an espionage risk.

THE COMPANIES: Huawei Technologies Ltd. and ZTE Corp. are among the world’s leading suppliers of telecommunications gear and mobile phones.

THEY SAY: Senior Chinese executives of both companies have denied that they pose a security threat or that they are under Beijing’s influence.

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