The Department of Defense has ordered retail stores on U.S. military bases to stop selling phones made by two Chinese manufacturers, Huawei Technologies Co. and ZTE Corp.  The move signals an escalating view from the U.S. government that phones from Chinese manufacturers pose security risks.  In a statement, a spokesman for the Pentagon stated that “Huawei and ZTE devices may pose an unacceptable risk to [the] Department’s personnel, information and mission.  In light of this information, it was not prudent for the Department’s exchanges to continue selling them to [Department of Defense] personnel.” 

Over the past few months, the government has increasingly highlighted the security concerns regarding telecommunications equipment from Chinese manufacturers.  The Pentagon did not offer any specifics regarding the nature of the security threat; however, in a February hearing of the Senate Select Committee on Intelligence, when asked specifically about Huawei and ZTE, the head of the Federal Bureau of Investigation (“FBI”), Christopher Wray, stated that the FBI was concerned about foreign governments co-opting manufacturers to allow their technology “to exert pressure or control over our telecommunications infrastructure,” “to maliciously modify or steal information,” and “to conduct undetected espionage.”  Mr. Wray indicated that there was other classified information that could not be shared in an open setting.  In that same hearing, the directors of the Central Intelligence Agency, National Security Agency, and the Defense Intelligence Agency all agreed that they would not use or recommend that citizens use products or services from Huawei and ZTE.

Concern about this threat is not limited to the military and intelligence services.  Members of Congress have also recently introduced legislation that highlights the cybersecurity threat from China and specifically names Huawei and ZTE as risk vectors.  Earlier in the year, on January 9, members of the House of Representatives introduced a bill—H.R. 4747, the Defending U.S. Government Communications Act—that would prohibit federal agencies from contracting with or otherwise procuring from Huawei and ZTE any telecommunications equipment or services.  A similar bill was introduced in the Senate on February 7.  To date, no action has been taken on either bill.