> There is probably no good reason to distrust Huawei. https://thediplomat.com/2019/02/the-huawei-dilemma-insecurity-and-mistrust/ https://thediplomat.com/2019

> There is probably no good reason to distrust Huawei. https://thediplomat.com/2019/02/the-huawei-dilemma-insecurity-and-mistrust/ https://thediplomat.com/2019/02/the-huawei-dilemma-insecurit... > The findings to these lines of inquiry proved troubling to the Intelligence Committee. The probe examined Huawei’s and ZTE’s ties to the Chinese state, including support by the Chinese government and connections to the Communist Party of China, and their work done on behalf of the Chinese military and intelligence services. For instance, Congressional investigators were concerned with the background of Mr. Ren, Huawei’s founder, who had links to the 3PLA – China’s signals intelligence division – and the Communist Party, such as serving as a member to the 12th National Congress. They did not find credible claims or evidence that the company was, in fact, an employee-owned and controlled enterprise or had an independent board of directors. > Instead, the Intelligence Committee found that the Chinese government and Communist Party exerted influence over and supported Huawei as a “national champion.” For example, Huawei admitted that an internal Party Committee existing within the company, consistent with Chinese law, but refused to discuss or describe the role, membership, or impact of this group on corporate decision-making. Huawei’s failure to provide further detailed information explaining how it is formally regulated, controlled, or otherwise managed by the Chinese government undermined, in the view of Congressional investigators, the company’s repeated assertions that it is not inappropriately influenced by the Chinese government. > Huawei also refused to provide answers to direct questions about its financing and connections with Chinese state banks, nor did it provide internal documentation or auditable financial records to evaluate its claims that any financing arrangements comply with standard practice and international trade agreements. In support, Congressional investigators cited the earlier finding of the U.S.-China Economic and Security Review Commission that enterprises like Huawei rely on generous state-backed financing to make an investment project in a new market viable. To the detriment of U.S. competitors, financial subsidies from the Chinese government can enable its national champions to penetrate markets by offering products below the costs of production. > Additionally, the Intelligence Committee found that Huawei exhibited a “pattern of reckless disregard” for the intellectual property rights of U.S. companies. Congressional investigators cited Huawei’s settlement in civil litigation with Cisco, in which Huawei agreed to remove certain products from the marketplace due to violations of Cisco’s intellectual property rights. Whistleblowers – former employees of Huawei – also offered testimony that the company deliberately used the patented material of other firms. In the judgment of the Intelligence Committee, these issues with intellectual property rights raised broader concerns of Huawei’s compliance with U.S. laws in general.