http://www.bloomberg.com/news/2013-09-19/zte-device-called-american-spurned-after-china-spy-angst.html
By Kathleen Miller
Bloomberg.com
Sep 19, 2013
The U.S. government stripped a videoconferencing system contract from a
Maryland company after a federal agency said the device marketed as
American-made is really Chinese.
The technology is produced by Shenzhen-based ZTE Corp. (000063), China’s
No. 2 phone-equipment maker. It worked with CyberPoint International LLC,
a small business based in Baltimore, to make its videoconferencing device
available to U.S. agencies via contract. CyberPoint’s Prescient unit built
and installed firewalls in the system, which it said "substantially
transformed" the product.
U.S. Customs and Border Protection disagreed, saying the government should
treat the products as Chinese, according to a ruling published today in
the Federal Register. The decision is the latest impediment to U.S. growth
for ZTE, which was effectively blacklisted last year by a congressional
committee that said its products may aid Chinese spying.
"It’s somewhat devastating for them," said Ray Mota, founder of Gilbert,
Arizona-based ACG Research, a networking-equipment industry consulting
company. "They'll have to re-strategize on how to approach this market and
come up with alternatives."
[...]
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