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Associated Press
Washington, October 09, 2012
American companies should avoid doing business with China's two leading technology firms because they pose a national security threat to the US, the House Intelligence Committee warned in a report.

The panel says US regulators should block mergers and acquisitions in this country by Huawei Technologies Ltd and ZTE Corp - world's leading suppliers of telecommunications gear.

Reflecting US concern over cyber-attacks traced to China, the report also recommends that US government computer systems not include any components from the two firms because that could pose espionage risk.