Huawei, ZTE dealt blow to U.S. smartphone ambitions

The U.S. Capitol, quiet on the outside, has seen a flurry of activity regarding Huawei and ZTE on the inside.

(Credit: Shara Tibken/CNET )

Congress just made Huawei and ZTE's goal of winning over U.S. consumers a whole lot tougher.

A report released by the House Intelligence Committee today accused the two Chinese telecommunications manufacturers pose a risk to national security and urged U.S. companies to avoid working with them. While the results of the report deal more with large-scale networking equipment and corporate customers, the trickle-down effect on both of their consumer-facing handset businesses can't be good. Huawei and ZTE have long been dogged by concerns that it could snoop on companies and individuals, and today's report only solidified those fears. CNET visited Huawei in China to directly address the security concerns.

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