Two prominent congressmen announced Thursday an investigation into the national security threat posed by Chinese-owned telecom companies in the United States.
This action, in addition to increasing awareness of Chinese cyber attacks and intellectual property theft, has thrust relations with China into the political limelight.
House Intelligence Committee Chairman Mike Rogers and ranking member Dutch Ruppersberger announced the investigation into Huawei, the largest telecommunications company in China, which has been the subject of much controversy.
Critics of the company allege close ties to the Chinese military. Rogers cautioned the American business community from “engaging Huawei technology until we can fully determine their motives.”
“The fact that our critical infrastructure could be used against us is of serious concern,” said Rogers. “We are looking at the overall infrastructure threat and Huawei happens to be the 800 pound gorilla in the room, but there are other companies that will be included in the investigation as well.”
The potential for Huawei to make sizable investments in the American economy has become contentious. The American Enterprise Institute noted on Wednesday, “Despite its global success, Huawei has consistently been rebuffed in attempts to make large investments and land large contracts in the United States.”
“Officials have intervened on a number of occasions to block potential acquisitions and equipment contracts involving Huawei, citing security concerns (though without specific details),” wrote AEI. “The company has vigorously contested allegations that it has ties to the Chinese military or represents a security risk in the United States. It has vowed to continue its quest to become a significant player in the US telecom market.” (RELATED: Obama re-ups US–Australian defense pact in China’s backyard)
A Republican presidential debate last Saturday highlighted candidates’ understanding that China will be an important issue for the next president. Former Massachusetts Gov. Mitt Romney and Texas Gov. Rick Perry both answered questions on the economic impact Chinese intellectual property theft will have.
AEI and The Heritage Foundation, both conservative think tanks, are set to co-sponsor a foreign policy debate with CNN next Tuesday. Heritage’s Ericka Andersen wrote Thursday that the candidates “should focus on the complicated balance found between maintaining cooperative economic ties and asserting a strong and lasting military presence in Asia with sufficient funding.”
“The complicated stability of our relationship with China and our position as a world superpower depend in part on this balance,” said Andersen.
China Telecom Americas, the U.S. division of China Telecom, announced Tuesday that it opened a branch office in Chicago. CTA also announced plans to expand into the U.S. wireless market in 2012.