China's ZTE seeking a solution to U.S. tech ban

ZTE says US ban will 'severely impact' its survival and partnerships

ZTE, which has also been linked to the Chinese government and possible espionage issues, was found guilty past year of sending goods and services to Iran and North Korea, and fined $1.19 billion. Now, the Wall Street Journal reports the government is taking more direct action against the Chinese technology giant.

Republican Senators Marco Rubio and Tom Cotton have introduced legislation that would block the US government from buying or leasing telecommunications equipment from Huawei or ZTE, citing concern that the Chinese companies would use their access to spy on USA officials. The New York Times has reported that the company has been subpoenaed by the Commerce and Treasury Departments over alleged violations of Iran and North Korea sanctions.

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U.S. authorities last week banned American companies from sales to ZTE for seven years, saying the Chinese company had broken a settlement agreement with repeated false statements - a move that threatens to cut off ZTE's supply chain.

Glenn Schloss, a spokesman for Huawei in Shenzhen, declined to comment about the probes. The Wall Street Journal says that the worse- case scenario facing Huawei is a similar US export ban. FCC Chairman Ajit Pai cited the risk of "hidden "back doors" to our networks in routers, switches and other equipment" that could "allow hostile foreign powers to inject viruses and other malware".

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"We pose no security threat in any country", he said. "In 30 years, not a single operator has experienced a security issue with our equipment".

Issues and warnings against Huawei have come from presumptions that the company has ties to the Chinese government.

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Both companies also have been under scrutiny by USA lawmakers over cybersecurity concerns. After all, Huawei has been in the United States government's cross hair perhaps longer than ZTE. Big box electronics retailer Best Buy said last month that it would stop selling Huawei smartphones.

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