China tech giants pose security threat to US: Panel

WASHINGTON (AP) - American companies should avoid doing business with China's two leading technology firms because they pose a national security threat to the United States, the House Intelligence Committee is warning in a report to be issued on Monday.

The panel says US regulators should block mergers and acquisitions in this country by Huawei Technologies and ZTE Corp, among the world's leading suppliers of telecommunications gear and mobile phones.

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 an espionage risk.

"China has the means, opportunity, and motive to use telecommunications companies for malicious purposes," the report says.