Tuesday, March 29, 2011

Huawei Challenges US to Launch Probe

Saturday February 26, 2011


NEW YORK: China's Huawei Technologies Co has challenged the United States to launch a formal investigation into its business, in an attempt by one of the world's largest telecommunications equipment makers to clear its name from allegations that have blocked US deals.

The highly unusual call follows the outcome of a recent US government foreign investment review that is forcing Huawei to sell assets it bought from 3Leaf, a small US company.

Three years ago, Huawei had to pull back from a bigger proposed investment in 3Com, in similar circumstances.

The company said it had been the victim of misperceptions about its relationship with the Chinese military because its founder, Ren Zhengfei, served in the People's Liberation Army until 1983.

Huawei said the US should investigate any doubts it had so that it could reach an accurate conclusion.

“We're literally willing to do anything the government might ask to give them visibility,” said Bill Plummer, Huawei's US-based vice president for external affairs. “We're open to any type of investigation or audit or review that they feel would address whatever concerns they have.”

Huawei said its ability to do business in the United States had been hurt significantly in the past 10 years by unproven allegations. As well as problems it had with acquisitions, US Republican lawmakers also raised national security concerns about Huawei's bid to supply wireless network equipment to Sprint Nextel Corp last year.

But the company said nobody had proven any links between its business and military technology.

“No one has ever offered any evidence that Huawei has been involved in any military technologies at any time,” the company said in an open letter it posted on its website on Thursday.

Huawei has made huge strides in recent years in the wireless network equipment market, where it has overtaken big players such as Alcatel-Lucent. Reuters

http://biz.thestar.com.my/news/story.asp?file=/2011/2/26/business/8141195

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