China-based telecommunications companies Huawei and ZTE have denied accusations that they threaten U.S. national security.

A report released on October 8 by the U.S. House of Representatives Intelligence Committee says that Huawei and ZTE pose a threat because of concerns over cyber-attacks allegedly traced to China.

In a conclusion to a yearlong investigation, the report recommends that the U.S. government computer system exclude equipment from the two firms. It also urges the Committee on Foreign Investments in the Unites States (CFIUS) to block acquisitions, takeovers or mergers involving the two companies.

"Huawei is a business in the business of doing business," William Plummer, Huawei's U.S. Vice President of External Relations, told Xinhua News Agency. The report "is an unfortunate political distraction from very real issues related to cyber vulnerabilities on a global scale," he added.

Huawei made "$32.4 billion in revenue last year across 150 different markets, or 70 percent of our business outside of China. Huawei is not going to jeopardize its commercial success for any government, period," he said.

In a statement, ZTE said it "has been forthcoming in responding to this assertion."

The two global leading telecom companies operate in over 140 countries. Huawei is servicing 45 of the world's top 50 telecom operators, including Vodafone, Motorola, France Telecom and T-Mobile. ZTE is also servicing 500 telecom carriers across the world.