Canada indicated strongly on Tuesday it would exclude Chinese telecom equipment giant Huawei Technologies Co Ltd (Shenzhen, China) from helping to build a secure Canadian government communications network because of possible security risks.

Meanwhile, the European Commission has delayed a trade case against Huawei and another Chinese telecom equipment maker, ZTE Corp (Shenzhen, China), easing tensions between the European Union and China, its second-biggest trading partner.

The European Commission has delayed a trade case against two Chinese telecom equipment makers also under scrutiny in the United States, easing tensions between the European Union and its second-biggest trading partner.

A U.S. congressional report said on Monday that Huawei Technologies Co Ltd (Shenzhen, USA) and ZTE Corp (Shenzhen, USA) -- the world's second- and fifth-largest makers of wireless telecoms gear -- were potential security risks and should be shut out of the U.S. market.

Vringo Infrastructure Inc, a unit of mobile phone software maker Vringo Inc (New York, USA), filed a patent infringement lawsuit against the UK unit of Chinese telecommunications equipment maker ZTE Corp (Shenzhen, China), driving up Vringo's shares by as much as 21 percent in early trading.

"ZTE has elected not to take a license to patents in Vringo's portfolio relevant to certain international standards," David Cohen, head of licensing, litigation, and intellectual property at Vringo, said in a statement.

China's top telecoms gear makers should be shut out of the U.S. market as potential Chinese state influence on them poses a security threat, the U.S. House of Representatives' Intelligence Committee said in a draft of a report to be released on Monday.

U.S. intelligence must stay focused on efforts by Huawei Technologies Co Ltd (Shenzhen, China) and ZTE Corp (Shenzhen, China) to expand in the United States, and tell the private sector as much as possible about the purported espionage threat, the panel leaders said, based on their 11-month investigation of the two firms.

Chinese manufacturers have cornered much of the technology sector, but when it comes to M2M modules they are being outpaced by their Western rivals, according to a new study from ABI Research.

Sierra Wireless (Richmond, Canada) and Cinterion (Munich, Germany) claim the top spots in a new ranking of M2M vendors published by ABI Research, while Huawei (Shenzhen, China) and ZTE (Shenzhen, China) come sixth and seventh.

The methodology assesses companies on the basis of unit shipments and revenues.

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Executives from China's top makers of telecommunications gear denied putting hidden spy code into their equipment at a rare public hearing of the U.S. House of Representatives Intelligence Committee on Thursday.

The officials from Huawei Technologies Co Ltd (Shenzhen, China) and ZTE Corp (Shenzhen, China), rejecting fears that their expansion in the United States poses a security risk, said they operated independently of the Chinese government.

Chinese group Huawei Technologies (Shenzhen, China), the world's second-largest telecoms equipment maker, is to invest $2 billion expanding its operation in Britain, creating about 700 new jobs in the next five years.

Founder and chief executive Ren Zhengfei outlined Huawei's plan on Tuesday, when he also met Prime Minister David Cameron.

"The UK is an open market, which welcomes overseas investment. I am, therefore, very pleased today to be announcing the $2 billion investment and procurement plan, promoting the development of openness and free trade," Ren said.

China's Huawei Technologies Co Ltd (Shenzhen, China), the world's second-biggest telecommunications equipment maker, said it was negotiating the conditions under which it would agree to take part in a U.S. congressional hearing into alleged security threats posed by Chinese telecommunications companies.

The House of Representatives Intelligence Committee announced earlier on Thursday that it would hold an open hearing on September 13 as part of its investigation into "the national security threats posed by Chinese telecommunications companies working in the United States."

Huawei (Shenzhen, China) has announced the start of a major M2M push in Europe as it aims to become the dominant player in the nascent industry.

China’s largest networks vendor has spent the last few months signing distribution agreements for its embedded modules in Europe’s biggest markets.

It now counts m2m Germany, Simple Solutions (UK), Sagitron (Spain and Portugal), Matrix (Spain), BE Telecom (Belgium and Israel), Netcom (Poland) and Techship (Sweden) among its partners, and says further deals are in the pipeline this year.