Underfire ZTE sells surveillance systems subsidiary

SOLD OFF: A ZTE flag flutters in front of the Chinese national flag outside its headquarters in Shenzhen in this April 17, 2012 picture. ZTE sold its subsidiary ZTEsec on Sept 21, during a US Congressional committee investigation into the company. - Reuters

SINGAPORE/HONG KONG/LONDON: China’s No 2 telecommunications equipment maker ZTE Corp, under fire in the United States over cybersecurity concerns, has sold a subsidiary which sells surveillance systems.

The decision to dispose of ZTE Special Equipment Co, also known as ZTEsec, was made on Sept 21, during a US Congressional committee investigation into ZTE and its local rival Huawei Technologies Co Ltd.