William Gallo of voanews.com writes:

Analysts say this week's U.S. congressional report that called two Chinese telecoms a threat to national security is likely to prompt China to retaliate against U.S. businesses.

The House Intelligence Committee report warned U.S. companies against doing business with China's largest phone equipment companies, Huawei and ZTE.

Huawei and ZTE, two of the largest telecommunications companies based in China, shouldn’t be trusted by government departments in the USA. That’s the warning from a US House of Representatives select committee report published yesterday.

It said the companies “failed to provide evidence that would satisfy any fair and full investigation. Although this alone does not prove wrongdoing, it factors into the Committee’s conclusions”. It concluded that US national security could be undermined if Huawei or ZTE provided equipment to the country’s critical infrastructure.

ZTE Corporation has announced that it will launch its first Intel-powered Android v4.0 smartphone in Europe this month. It’s called the ZTE Grand X IN and uses Intel’s Z2460 Atom processor.

The forthcoming smartphone has a 4.3-inch screen, an 8-megapixel camera and a 1650mAh battery.

The worldwide mobile phone market grew by just 1% year-on-year in the second quarter of 2012, according to the International Data Corporation Worldwide Quarterly Mobile Phone Tracker. However, the volume of smartphone sales grew by 42.1%.

IDC has calculated that 406 million mobile phones were shipped in Q2 2012, of which almost 154 million were smartphones.

UK rapper Professor Green will be the official ambassador for ZTE in 2012, having originally partnered with the Chinese telecoms business last year.

The renewed partnership has seen Professor Green featured in the official unboxing video for ZTE’s new dual-core Grand X smartphone, which was launched this week.