The House Intelligence Committee suggested Chinese cellphone and telecommunications makers Huawei and ZTE be banned from mergers and acquisition in the U.S. after a yearlong investigation in to the companies potential spying activities.

In a special report on the two companies, the committee cited national security concerns, saying the two companies’ equipment could be used to intercept intelligence for Chinese government and military. The report also encouraged the U.S. government and companies to choose other suppliers.

Huawei denied the suspicion and accusation from the committee and said the committee lacked any evidence.

“Purporting that Huawei is somehow uniquely vulnerable to cyber mischief ignores technical and commercial realities, recklessly threatens American jobs and innovation, does nothing to protect national security, and should be exposed as dangerous political distractions”, said William Pucker, vice president of Huawei.

The Foreign Ministry of China urged American Congress to “respect the fact, push away the prejudice and give Chinese companies a fair chance to play in global markets.”

Huawei, one of the largest telecom manufacturers has been a world leader in building the 4G network. It met few competitors in North America because most domestic suppliers, even Cisco, cannot produce all equipment the 4G network needs at a low of cost.

In an interview with CBS "60 Minutes", committee chairman, Republican Rep. Mike Rogers, attributed the company’s success to strong support from Chinese government and industrial espionage.

Ren Zhengfei, CEO of Huawei, worked as a military communication researcher in the Chinese army before he started the company with 4000 dollars in Shenzhen. He rarely speaks to public or talks about his experience in the army. The company also has been known as “ operating behind the door.” Few media outlets have had a chance to film inside its Shenzhen headquarters.

As the company is penetrating the infrastructure market in every corner of the work, more countries are demanding Huawei to keep its operations and goals transparent.

Reach reporter Meng Meng here.