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Huawei Paper Compares Congressional Committee with McCarthy Era Hysteria

Shortly before the scheduled Congressional testimony on the subject of Chinese telecom security threats, Huawei issued a statement through its US website that compared Congress’ accusations to McCarthy-era politics. The paper makes the claim that Congress is acting on “allegations based on allegations.”

Though not directly written by the Shenzhen-based company, the 81-page paper commissioned for the occasion and entitled “The Case for Huawei in America” reflected some of their concerns in the US market and with broader US relations. It stated that the Congressional hearing would have “adverse implications” beyond the original intent of the investigation, suggesting that it might produce “mirror-like Chinese measures”.

Huawei tried and failed in 2008 to purchase 3Com in the US along with its partner at the time, Bain Capital*. Since then, it has continually faced issues related to the security concerns of regulators in the US, most recently in an attempt to buy assets from 3Leaf Systems in February 2011.

Yet this latest move could just as easily help Huawei’s image as much as it could quickly harm any progress gained. Issuing an accusatory public statement against Congress could further incite resistance, especially if legislators want to be seen as tough on China so close to an election.

Source: Reuters UK

*co-founded by Mitt Romney in 1984, who left in 2002.

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