US Ban on Chinese Communications Saps Confidence in US Investment
Xu Wei
/SOURCE : Yicai
US Ban on Chinese Communications Saps Confidence in US Investment

(Yicai Global) Jan. 18 -- A US lawmaker introduced a bill last week which seeks to bar government agencies and related entities from using the communications products of two Chinese companies it cites by name.

Gao Feng, spokesman of China's commerce ministry replied by noting at a news briefing today that this sends the wrong signal to the market and is a detriment to cooperation between the two countries in the information and communication sectors. It has also shaken Chinese enterprises' confidence in the US business and investment environments.

Mike Conaway, a Republican congressman from Texas, proposed the Defending US Government Communications Act (HR 4747), which prohibits government procurement or use of communications equipment or services provided by the two, and prohibits their application as a core technological component of US telecommunications facilities.

This China-made communications equipment will endanger national security and Americans' public life will be monitored, Conaway predicted. US intelligence officials have confirmed that China's Huawei Technologies Co. and ZTE Corp. [HK:0763] share data with their government, while as other Chinese enterprises are also thriving in the US information security risks to it are rising in consequence, he warned.

China, in turn, hopes the US treats Chinese enterprises and products objectively and impartially from the perspective of consumers' interests and strives to create a more open, fair, transparent and convenient market to truly benefit US consumers, Gao added.

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Keywords: US , HUAWEI , ZTE , Communication