Device makers and mobile phone network China, Huawei and ZTE gets block in building its presence in the United States (U.S.). Both companies are considered dangerous U.S..


Quoted from Cnet, Tuesday (10/09/2012), House of the U.S. Intelligence Committee released a report claiming that two Chinese companies pose a security risk. The report suggested that U.S. companies avoid
cooperation with them.

Although the report deals with large-scale enterprise networks and corporate customers, the effects of this can also reach into the handheld device business. Because Huawei and ZTE have long followed the suspicion that they were able to peek into the company or individual.

The report came out as the second Chinese company is working to build its presence in the U.S. smartphone market. So far, they have been able to create a small step, starting from the prepaid market penetration in the low-end, and then moves up to bundling multiple devices owned national operator.

However, allegations that the two companies could lead to a security risk to stop the momentum that has been built up over several years.

"Brand awareness is a great thing and you do not want any negative associations with your brand. This indicates that Huawei and ZTE are now probably have more stigma to overcome," said RBC Capital analyst Mark Sue.

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