U.S., Britain Issue Warnings Over Chinese Telecom Equipment Maker ZTE

WSJ.com: WSJD - Technology 

U.S. and British officials struck separate blows at telecommunications-equipment giant ZTE Corp., ratcheting up national-security scrutiny of a big Chinese company amid broader economic tensions between Washington and Beijing. British cybersecurity officials warned U.K. phone carriers to stay clear of ZTE's equipment and services, citing concern about the potential that Beijing could force the company to help it infiltrate or sabotage telecoms infrastructure. The U.S. Commerce Department, separately, banned American companies from selling products to ZTE, saying the company violated the terms of a deal last year settling allegations of sanctions busting involving North Korea and Iran. A ZTE spokeswoman said in a statement that the company is aware of the Commerce Department action. ZTE is "assessing the full range of potential implications that this event has on the company and is communicating with relevant parties proactively in order to respond accordingly," she said.

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