The Pentagon has ordered stores at US military bases to stop selling two brands of Chinese-made cellphones and modems because the devices may pose a security risk. This affects shops on or near US military bases around the world.
The US Deparment of Defense has expressed concerns over smart devices issued by the two companies, fearing that they may pose an "unacceptable risk to the department's personnel, information, and mission".
USA president Donald Trump is considering issuing an executive order that would block China's Huawei and ZTE from selling telecom equipment in the United States, a Reuters report indicated.
Maj. Dave Eastburn, a Pentagon spokesman, told Fox News: "For security reasons, I can't get into the technical aspects of potential threats". "Given the security concerns associated with these devices, as expressed by senior US intelligence officials, it was not prudent for the Department's exchange services to continue selling these products to our personnel".
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Both ZTE and Huawei reported lower sales from the U.S.
The US government's concerns over both Chinese smartphone makers go back years and are underscored by similar worries in other countries.
And in February, top officials from the CIA, NSA, FBI and the Defense Intelligence Agency told Congress that American citizens shouldn't use Huawei or ZTE phones.
Wall Street Journal reports that Washington despatched a team to Beijing headed by Treasury Secretary Steve Mnuchin to hold talks over an ever-worsening economic relationship with China.
USA lawmakers and the Trump administration have pressured US companies to not sell Huawei or ZTE products, saying they potentially could be used to spy on Americans. Though these devices can no longer be sold on military base retail stores, nor in retail stores near them that specifically cater to USA personnel, troops can still purchase the devices elsewhere for personal use.