Two Chinese telecom companies involved in espionage in US?

This transcript is automatically generated

-- -- about China spying on the United States and we get today a new alarming congressional report that's warning of -- really about huge huge Chinese Telecom firms.

And it really advising that these firms should not be allowed to set up shop.

In our country these Telecom companies create information networks and these networks could give the company's.

The ability to access both private property information that you past -- in your personal networks on your computer.

Or secure government networks and the information that lives on those networks there's concerns about these companies having access to that type of information.

Joining us live Republican cousin Mike Rogers and -- again.

The chairman -- the House Intelligence Committee so congress and this is a big report it's been a year in the making as bipartisan.

-- -- one of the companies that you point out in this report the you have concerns about in this company.

Has its tentacles and a 140 different countries why are you concerned about this company operating.

And the United States.

There a couple of things first of all the Australians tickled took a look at this it's that you can even operate in any government system in the expansion -- Broadway in Australia.

Great Britain actually has them a part of their network and then came back and said we have to come up with these third party validation systems to try to protect information flowing across our network switches.

-- -- is really difficult to do they're having a hard time getting through it.

And now this company with.

Is tied to the Chinese Government wants to expand more into the United States.

And so what we found in the report is that they received very questionable financing from the Chinese Government.

Which allows them to put their price points lower than any other competitor so they could artificially compete to get into these.

Infrastructure networks of the United States so think about all the information Jenna that flies -- across these networks could be your personal.

Financial information could be your medical records and more importantly it would give them broad access to these networks that companies are on that are trying to protect.

From Chinese espionage today it would give them an easier way to get there.

Do you think we've found is.

-- ahead do you think this company is.

Is actually working on behalf of the Chinese Government is it is illness like as spy agency on its own.

Well it certainly -- they -- -- a national champion so China has deemed that this particular companies and national champion meaning it's gonna get all -- support and finance and other things that the Chinese Government can give it to be successful around the globe.

So we found instances of bribery and corruption so they could get not only just here in the United States by the way but other nation states so that it can get its equipment.

Into these countries.

We also found that this equipment had bugs and back doors and beginning capability and what does that mean.

Well remember some of these routing system -- your information flies across these routers and it tells it which way to -- to traffic Koppen.

Data packs flying across these networks.

And that night we had reports people came forward to the committee saying.

Hey this equipment would turn on and start beat inning and we found that it was beat getting information that it would have did not have authorization or access to.

Back to China.

And so we know that this is a serious serious -- -- they and why would we open up our networks knowing that this information and it is out there.

Says these networks that your hard to visualize right because her passing along some information between our blackberries and on the computer -- -- we often hear about this this technology for -- And there's not a United States company that makes this technology there -- other companies besides those in China that make it.

But -- suggested that -- even these companies at a European companies.

Take their parts and and create -- technology with the Chinese made products so is recommending that this company.

-- an operating in the United States really keeping us any safer if those other companies are still making their own technology in China.

Well the other option here -- with proper hands say yeah I'll let let them just have -- critical infrastructure.

-- in our shocks that's really the wrong answer they haven't quite penetrated to the point where.

We couldn't mitigate -- of the damage that could be done on our American networks and we ought to keep it that way.

And we're gonna have to be vigilant and what it does it also puts the Chinese on -- no longer are you gonna do these kinds of things with -- being called.

On the carpet you need to understand this is not the way the world engages in commerce you cannot steal your way to prosperity and that's what they've been doing.

And they have not been -- held accountable for it.

And so what I refuse do the chairman of the of the national security committee and my ranking member a Democrat by knowing this was a bipartisan report.

That laid out the facts here that says this these these two companies are up to no good.

And and have this connection to the Chinese Government which we already know is working to steal -- very valuable intellectual property and they do it.

Thousands and thousands and thousands of times today.

Real quick here crashed and what's legal ramifications of your report -- companies -- -- -- the country right now on what's really next.

You have the report won't stop and any of -- -- activities here today there's 22 components of -- work.

Recommending that a group of us get together very soon for -- formulation.

Of a package of bills that would help protect our critical infrastructure moving forward from a national security perspective number one.

Number two there's a whole host of criminal activity here.

Very purposeful and a pattern of visa violations to try to get Chinese workers in.

To work at these companies for very specific tasks which is a violation of -- a law.

You have copyright infringement of -- they're stealing other people's work.

And refocusing -- in -- -- their companies to use that as a competitive advantage and bribery and corruption as I said bugs.

Back doors and be -- activities -- gonna -- referred to the FBI so we think that there's going to be great criminal.

Investigation and remember this is coming from current and former while way employees.

As well as our foreign partners overseas as well as the classified information we get from our intelligence services this is solid stuff.

-- as you mentioned it a year in the making this reported this story will continue to follow -- rather reasons that you mentioned thank you for your time today we appreciate very much.

Your cousin cars and rises mention that he talked a lot to some of the former employees of -- that's one of the companies that's mentioned in this report.

And -- reach out to them today and this is part of the statement that they gave us saying quote.

This investigation report -- nothing more than a put up politics exercise that is ignored technical commercial and cultural realities.

It is she is nothing in terms of securing networks and a world in which every major vendor develops codes and builds globally.

Including China so we'll continue to watch this story -- -- happening now can.

Watch Live

Two Chinese telecom companies involved in espionage in US?

Details

Clips

Powerful Politics

Are drones necessary to prosecute war on terror?

Lawmakers overlooking CIA's role in Benghazi attack?

Special prosecutor in Lois Lerner's future?

What's next in IRS investigation?

Did Congress let Lois Lerner off the hook?

Scandals affecting public opinion of Obama administration?

White House offers new timeline of IRS scandal

Impact of Justice Department leak probes on American media

WH chief lawyer notified about IRS scandal in April?

Mainstream media showing signs of scandal fatigue?

Will scandal cull size of IRS?

Scandals forcing Obama administration to play defense

Transcript

Recommended