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China telecoms firms may hold security risks for US

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An era of remarkable growth by Chinese telecommunications companies such as Huawei Technologies and ZTE Corp carries potentially 'catastrophic' risks for US national security, according to a congressional advisory panel.

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China's growing investment in the US telecoms industry 'could eventually provide China access to or control of vital US and allied information, networks, or segments of critical supply chains', said the US-China Economic and Security Review Commission on Wednesday.

As Chinese and US leaders prepare to make nice - and strike deals - before President Hu Jintao's arrival in Washington next week, the report underscores the lingering distrust between the two countries' trade and security relationship.

'The clear economic benefits of foreign investment in the United States must be weighed against the potential security concerns related to infrastructure components coming under the control of foreign entities,' the panel said, emphasising emerging risks rather than present danger.

The 103-page report outlines scenarios by which the Chinese government could collect massive amounts of sensitive information or launch crippling cyberattacks through state-supported companies' access to global networks.

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Infrastructure and products such as long-haul fibres, security software, and smartphones are particularly susceptible to tampering, the panel notes, and Chinese state-supported companies have made significant investments in each of these areas.

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