I am amazed that telecom executives are not alarmed by the facts surrounding Huawei Technologies and ZTE Inc. These two Chinese companies manufacture and install critical infrastructure hardware and software for telecommunications. The need for security that prevents private phone calls and data streams from being intercepted and used by others is critical and essential. The manufacturer is the one point in the chain where something can be installed and not easily findable. Can U.S. telecom users afford the risk that the Chinese are intercepting streams of information?
The short answer is no. And Huawei is suspect. It is a private company owned by its employees and conducts no disclosure that would be reflective of an open company. And what kind of company in China is owned by its employees? A socialist one? A State owned one? There is no concept of ESOP in China. What benevolence on the part of the initial capital providers would have prompted giving away massive amounts of wealth to workers? There is no evidence of such wealth amongst the workers and certainly there would be at least anecdotal evidence of the workers attaining wealth by working at Huawei.
My conclusion is that the Chinese government or the Army owns Huawei and we cannot trust them to provide US buyers with clean equipment and software. I don't understand why Telecom executives in Kentucky would want to save money and install suspect equipment.
And I do understand why the U.S. Congressman are concerned about this. I am concerned about this.
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