China’s steady rise as a telecommunications manufacturing and research powerhouse has “profound” national security and economic ramifications for the United States, according to the United States-China Economic and Security Review Commission.
High-tech equipment produced by Chinese state-owned telecommunications companies is quickly becoming integrated into American and global computing, communications, wireless and next generation networks. U.S. and other foreign telecommunications companies have signed hundreds of joint venture agreements with Chinese firms, providing them with entry into American markets.
Entire equipment supply chains have shifted to China, and include research and development, design, manufacturing and global deployment of technology and systems. The U.S. government has barely acknowledged the ramifications of the shift of the telecommunications industry to China and growing control of Chinese companies over domestic and international networks.