House: Don't do business with Chinese telecom giants

U.S. telecommunications operators should not do business with China's top network equipment makers, because potential Chinese state influence on the companies poses a security threat, the House of Representatives Intelligence Committee said in a report .

The report follows an 11-month investigation by the committee into Huawei Technologies Co., Ltd. and its smaller rival, ZTE Corp.

The companies have been fighting an uphill battle to overcome lawmakers' suspicions and expand in the United States after becoming key players in the world market.

The committee's bipartisan concerns are bound to set back the companies' U.S. prospects and may also lead to new strains in trade ties between the United States and China.