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International relations

Japan scrutinizes China's Huawei and ZTE over spying fears

With US citing security risks, allies consider tighter regulations

Huawei and ZTE together accounted for roughly 9% of Japan's telecom-equipment market in 2017.   © Reuters

TOKYO (Dow Jones) -- Japan is studying restrictions on Chinese telecommunications-equipment companies Huawei Technologies Co. and ZTE Corp. as U.S. fears of cyberspying by Beijing prod allies to follow suit.

U.S. officials have been arguing that using equipment from the two companies in network infrastructure constitutes a security risk. Australia last week banned both Chinese companies from its next-generation mobile network. A July study by the U.K. government said it found "shortcomings" in Huawei's engineering processes that exposed new risks.

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