Senators flag Chinese telecom firm Huawei

Republican Senators raised concerns this week over reports that a firm with ties to the Chinese military is bidding to supply equipment to Sprint Nextel and potentially the U.S. government.

Eight Republican senators wrote Wednesday to senior Obama administration officials, including Treasury Secretary Timothy Geithner and Director of National Intelligence General James Clapper, to question reports that the Chinese telecom firm Huawei Technologies is seeking clearance to do business in the United States. 

The senators claim Huawei has questionable ties to the Chinese military and has supplied equipment to Iran, the Taliban and Saddam Hussein's regime in Iraq. They argue allowing Huawei to supply equipment to Sprint Nextel, a major defense contractor, could threaten national security.

"At worst, Huawei's becoming a major supplier of Sprint Nextel could present a case of a company, acting at the direction of and funded by the Chinese military, taking a critical place in the supply chain of the U.S. military, law enforcement, and private sector," wrote Sens. Jon Kyl (Ariz.), Kit Bond (Mo.), Richard Shelby (Ala.), Jeff Sessions (Ala.), James Inhofe (Okla.), Jim Bunning (Ky.), Richard Burr (N.C.) and Susan Collins (Maine).

The firm pushed back in a statement sent to reporters, denying the senators' claims that it is controlled by the Chinese government or military.

“Huawei is disappointed to learn that old mischaracterizations about the company still linger and we want to reiterate some of the facts. The truth is Huawei is an employee-owned private company. Government or military organizations do not hold any shares, or control the company in any form."

The senators asked the administration to provide details on any talks between the Treasury Department and Huawei, as well as any unclassified information on the firm's affiliation with China's People's Liberation Army. They also ask if the firm currently supplies any government contractors or if the intelligence community has any concerns or past examples of the firm using its position to endanger national security.