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Updated! U.S. Security Sanctions Nip Huawei, ZTE In The Bud

Chinese telecom companies Huawei and ZTE had big plans for the U.S. market. Now they're essentially toast.

Huawei representatives reached out to TWICE with the following statement in response to yesterday’s story on national security concerns:

“Huawei’s products are sold in 170 countries worldwide and meet the highest standards of security, privacy and engineering in every country we operate globally including the US. We remain committed to openness and transparency in everything we do and want to be clear that no government has ever asked us to compromise the security or integrity of any of our networks or devices. Huawei is an employee-owned company and will continue to develop its global business through a significant commitment to innovation and R&D as well as to delivering technology that helps our customers succeed.”

Chinese telecom companies Huawei and ZTE had big plans for the U.S. market. But a recent series of security-related sanctions by the Pentagon, which has banned their phones from its retail military exchanges; by the Commerce Department, which cut ZTE off from U.S.-made chipsets (Huawei makes its own); and by Congress, which pressured Verizon and AT&T into dropping Huawei’s recent Galaxy challenger, have rendered those companies essentially dead in America’s mobile waters.

“As the U.S. government mulls further restrictions on the activities of Chinese telecom-equipment makers Huawei Technologies Co. Ltd. and ZTE Corp., many small carriers dependent on these vendors for low-cost gear have found themselves in limbo.”

See the full story at Bloomberg.