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U.S. Lawmakers Call for Scrutiny of Baicells, Chinese Telecom Firm

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Baicells, a Chinese telecom hardware manufacturer founded by former Huawei employees, is facing heightened scrutiny from U.S. lawmakers over national security concerns. John Moolenaar, the top Republican on the House Select Committee on China, emphasized the need for rigorous government oversight of Baicells, citing potential cyber vulnerabilities in the company’s products. He warned that any presence of such companies in U.S. networks, particularly in sensitive areas, should raise significant national security alarms.

Despite Baicells’ reassurances that its products do not pose security risks, the company is under investigation by the FBI and the U.S. Department of Commerce. The company has provided base stations and routers to more than 700 U.S. networks, including those near military installations. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has flagged Baicells’ firmware for cyber vulnerabilities, further raising concerns.

Baicells’ chairman, Sun Lixin, defended the company by stating that all tech companies, regardless of their size, continuously release updates to address security vulnerabilities. He also expressed willingness to cooperate with U.S. inquiries.

The scrutiny of Baicells is part of a broader concern in Washington over the potential for Chinese-linked companies to compromise U.S. telecommunications networks. U.S. officials have warned that China-linked suppliers, including state-backed hacking groups like “Volt Typhoon,” could exploit network vulnerabilities for espionage.

Democratic leaders in Congress, including Frank Pallone and Mark Warner, have called for greater accountability and quicker responses to national security risks posed by foreign adversaries in U.S. telecom networks. They argue that focusing on individual companies without addressing systemic risks is insufficient to protect critical infrastructure.

 

Chinese Hack of U.S. Telecoms Compromised More Firms, WSJ Reports

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A Chinese cyberattack has compromised more U.S. telecom companies than previously reported, including Charter Communications (CHTR.O), Consolidated Communications (CCII.UL), and Windstream, according to a Wall Street Journal report. Hackers exploited unpatched devices from security vendor Fortinet and compromised routers from Cisco Systems (CSCO.O), infiltrating networks of major firms such as AT&T (T.N), Verizon (VZ.N), Lumen Technologies (LUMN.N), and T-Mobile (TMUS.O).

The attack, linked to the Chinese-backed Salt Typhoon cyberespionage operation, raised concerns about the scale of the breach and the vulnerability of critical infrastructure. U.S. national security adviser Jake Sullivan warned telecom and tech executives that Chinese hackers could potentially disrupt U.S. ports, power grids, and other infrastructure. The affected companies have since secured their networks and worked with law enforcement and government officials to mitigate further damage. However, the hack is a reminder of the growing risks of state-sponsored cyberattacks.