Huawei = military / ZTE = government
"Huawei has long been suspected of links to the Chinese government and not without reason. The firm’s founder, president and CEO Ren Zhengfei served in the People’s Liberation Army while a US intelligence report last year tied chairwoman Yun Safang to the mysterious Ministry of State Security."
In the west we often fail to understand the political and military structure in China: The government and the military are two quite distinct 'families' with a lot of links and shared purpose but surprisingly little overlap.
Huawei (roughly translated "Go China!) is very much military affiliated, whereas ZTE is more under government control.
I'm sure (well I hope at least) that the intelligence communities understand the separate affiliations of the two companies and the significant implications this has in relation to their position and motivation within the PRP as a whole.