China's commerce ministry "strongly opposes" the U.S. report issued by the House of Representatives Intelligence Committee, which alleged Huawei Technologies and ZTE posed national security threats in the country and warned companies from procuring equipment from the two China vendors.
In a report by China Daily, ministry spokesperson Shen Danyang said the report from the United States was based on "subjective guesswork" and "untrue evidence" and used national security as an excuse for blocking Chinese companies from fair competition in the U.S. market.
He added this move from the Americans violated its free market principle and would undermine investments and cooperation between the two countries.
"We hope the United States can make concrete efforts to create a just and fair market environment for the two countries' companies and promote a sound development of bilateral economic and trade ties," Shen said.
Following the release of the report, which came after an 11-month investigation, the House panel said it received "dozens and dozens" of complaints from current and former employees who reported "suspicious equipment behavior". As a result, the U.S. government stated on Wednesday it will continue to investigate into Huawei and ZTE's business practices.