ZTE, as well as Huawei, has faced scrutiny by the U.S. federal government over allegations that Chinese government surveillance could be performed through its handsets and infrastructure equipment. In 2012, the House Permanent Select Committee on Intelligence issued a report recommending that the government be prohibited from purchasing equipment from the firms, citing them as possible threats to national security. A ban on government purchases of Huawei and ZTE equipment was formalized in a defence funding bill passed in August 2018.