There is not much that brings together Democrats and Republicans these days. But on Huawei, the Chinese telecommunications giant, American politicos are uncharacteristically united. Though largely unknown to U.S. consumers, Huawei Technologies is an industry leader in the field of telecommunications infrastructure, the "plumbing" of mobile-phone networks. Last year its sales topped $35.4 billion — more than Goldman Sachs and McDonald's. It likes to brag that one-third of the world's population is hooked up to networks that use its gear. But that's precisely what makes the U.S. nervous. In this week's magazine (available to subscribers here), business correspondent Michael Schuman explores the U.S.'s distrust of the private Chinese firm, which reflects Washington's wider distrust of Beijing. Is Huawei an agent of the Chinese state, as critics charge, or simply a successful foreign business that might challenge the titans of American tech? U.S. lawmakers see the private Chinese firm as something of a Trojan horse. Writes Schuman: Experts worry that allowing Huawei equipment to plug into the networks would give the Chinese government or the People's Liberation Army (PLA) backdoor access to sensitive computer systems or telephone lines, potentially allowing them to disrupt communications or pilfer valuable economic and military secrets. The danger, the company's detractors say, isn't just theoretical. "We believe that China has the means, opportunity and motive to use their telecommunications company against the U.S.," says Congressman Dutch Ruppersberger, the ranking Democrat on the House Permanent Select Committee on Intelligence. He says the committee wants "to put our citizens on notice" about "how serious this is and that the Chinese government is working with them and is involved." Fears over Huawei also reflect the growing concern about the vulnerability of American communications networks, which have recently come under repeated attacks by Chinese hackers. (MORE: Hack Attack: China and the U.S. Trade Barbs on Cyberwarfare) Indeed, the attention garnered by recent cyberattacks has done little for the firm's prospects in the U.S. In recent weeks President Barack Obama and Treasury Secretary Jack Lew have both warned China to stop its online aggression, and Defense Secretary Chuck Hagel in March(http://stats.wordpress.com/b.gif?host=world.time.com&blog=19871253&post=79685&subd=timeglobalspin&ref=&feed=1)
Via: TIME GlobalSpin