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Very topical, there is an article on this issue on the landing page of IT World today. The takeaway I got from that was that aside from security concerns, the issue for many companies is not that Huawei equipment is Chinese, the issue is that their network equipment is not as good as Cisco's. Good point.
Aside from that, I think that the timing is blatantly political, but the concern is still valid, and that concern is not limited to a house committee trying to score political points. Australia banned Huawai from contracts to build out the Australian National Broadband Network. How can you be sure that there aren't ties to the China military with ZTE or Huawei - it's China after all. And how would you tell if there are back doors anyway without a huge investment of time and effort?
Just out of curiosity, I wonder if there will be any impact on either company's smartphone sales as a result of the bad publicity.