The nation's top counterintelligence official told the Senate Intelligence Committee that penetration of the U.S. market by the Chinese telecom firm ZTE could pose a national security risk to the United States. Under questioning by Sen. Ron Wyden, D-Ore., Evanina said U.S. intelligence agencies are on record as assessing that Chinese telecommunication firms are used as a vehicle by the Chinese government to conduct espionage. He said he would never use a ZTE phone.
"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump tweeted Monday. "Too many jobs in China lost." ZTE ran afoul of the U.S. Treasury and Commerce departments when it sold hardware incorporating American technology to Iran and North Korea in violation of U.S. sanctions against those countries.
The ZTE controversy comes as critics are pointing to
the Trump Organization’s involvement in an Indonesian theme park backed by the Chinese government, arguing that Trump got $500,000,000.00 & faces a conflict of interest in negotiating with China.
The Pentagon ordered stores at U.S. military bases to stop selling ZTE and another Chinese brand of cellphones and modems, saying the devices may pose
a security risk. Huawei and ZTE products are being removed from the three store chains operated by the Defense Department at installations worldwide, Pentagon spokesperson Maj. Dave Eastburn said. "Huawei and ZTE devices may pose
an unacceptable risk to the department's personnel, information and mission," said Eastburn. "Given the security concerns associated with these devices, as expressed by senior U.S. intelligence officials, it was not prudent for the department's exchange services to continue selling these products to our personnel."
A report by the House Intelligence Committee in 2012 found that both Huawei and ZTE posed risks to American national security. "The committee is concerned with the influence of the Chinese state in ZTE's operations. Such access or influence would provide a ready means for the Chinese government to exploit the telecommunications infrastructure containing ZTE equipment for its own purposes. … The history and structure of ZTE, as admitted by the company in its submissions to the committee, reveal a company that has current and historical ties to the Chinese government and key military research institutes," the report said.
"ZTE maintains a Chinese Party Committee within the company, and has not fully clarified how that committee functions, who chooses its members, and what relationship it has with the larger Chinese Communist Party."