US raises concerns over Huawei deal

<p>A deal between Huawei and South Korea has raised concerns in the US.</p>

US senators have aired concerns over a deal between technology company Huawei and South Korea over improvements to the Asian nation's broadband infrastructure.

The senators have written to the administration led by US president Barack Obama to warn him that it could pose a security risk.

Ren Zhengfei, the founder of the company, is a former member of the People's Liberation Army. However, Huawei stresses that the vast majority of the firm is owned by its employees.

Senators Robert Menendez of New Jersey and Dianne Feinstein of California said the deal between South Korea and Huawei to "develop and/or supply the Republic of Korea's advanced LTE telecommunications backbone raise[s] serious questions and potential security concerns".

"Maintaining the integrity of telecommunications infrastructure is critical to the operational effectiveness of this important security alliance," they added.

The share price of Huawei rose by around one per cent during trading on the Shenzhen market today, with investors unconcerned about the letter from the two senators to Mr Obama.

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