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Do Chinese Companies pose a Threat to US National Security?
Pinnacle Digest writes: China is beginning to fear that 'contagion' effects from “demonized” Chinese enterprises will spread throughout the western world.
This comes after the congressional intelligence committee released a report which concluded that Chinese ICT enterprises Huawei (SZ:002502) and ZTE (PINK:ZTCOF) are threats to US national security. Although not yet binding, the report is unsurprisingly causing a backlash from Chinese trade ambassadors.
Wang Jiangyu, Deputy Director of Center for Asian Legal Studies, believes that the report is a biased assertion with a political end rather than one based on facts and careful analysis. He used an old Chinese proverb, by stating, “He who has a mind to beat his dog will easily find a stick.”
As countries fight to expand their economies and add jobs, one has to be pragmatic when evaluating the reasons behind accusations.
Fitch, in a recent statement, noted that, “In January, India’s Department of Telecommunications warned of potential security issues not just with the Chinese manufacturers, but also with vendors from the U.S., Europe and Japan, and hence emphasized the need for India to become more self-sufficient in telecoms network technology.”
Wang Jiangyu commented that, “Although the report is not a judicial decision or a legislation, which is legally-binding, it may still cast a shadow on the overseas development of Chinese enterprises.”
Wang explains that the report may affect not just the short-term but also the long- term expansion of Chinese enterprises in the United States. As a result, people may naturally think that it is incorrect, in political term, to cooperate with Chinese enterprise like Huawei and ZTE.
“What’s even worse is that the judgment may spread to the other countries all over the world, where people, companies and governments may no longer do business with these Chinese companies, ” Wang added.
You be the judge of whether or not the US is escalating its efforts to curb China's global growth.