Three Chinese firms face blocked US entry

National security issues in the US are increasing the number of Chinese companies stumbling under government scrutiny, Caixin reported. Chinese telecom equipment makers Huawei (002502.SH) and ZTE (000063.SH, 0763.HKG), together with Chinese-owned wind turbine producer Ralls Corp, have faced US government hostility on attempts to expand in the US market. The telecoms companies, two of the world’s biggest, could threaten national security, the US House Intelligence Committee said in a report published this week. The report called on the Committee on Foreign Investment in the United States (CFIUS) to block acquisitions, takeovers, or mergers involving Huawei and ZTE. “US government systems, particularly sensitive systems, should not include Huawei or ZTE equipment, including component parts,” the committee said in the report. Both companies denied they pose a threat. US president Barack Obama recently barred Ralls, owned by Chinese heavy equipment manufacturer Sany Group, from erecting four wind farms in Oregon. Obama considered the work a treat to national security due to the proposed farm’s proximity to a military installation.