Huawei Shifts Focus to Other Telecom Markets
Huawei gave up their plans in entering the market for telecom network equipment in the United States since the company sales efforts have been frequently blocked due to security fears. According to the company’s executive vice president Eric Xu, the company is not interested in the US market anymore and has already shifted its focus of expanding away from the United States.
The company’s decision ended an aggressive push for business in the largest economy in the world, where US security officials and some politicians repeatedly claimed that Huawei is a threat to the US national security which the company has consistently denied. Even with Huawei dealing with 45 of the world’s top telecom carriers, it failed to get contracts from any leading telecom operators in the United States.
Last October a US congressional committee has reported that the Huawei and ZTE is likely to be a threat to the country’s national security. During the time a US representative called on the US government and several private sector companies to stay away from Huawei and ZTE. Despite the company’s success in other markets, they still struggled in entering the US market for many years because of the military background of its founder Ren Zhengfei who was a former PLA officer.
In efforts to battle these setbacks, Huawei did a major lobbying campaign by hiring a number of senior executives from its rivals. Also a senior Huawei executive even wrote a letter calling of the US government to launch an investigation believing it will clear the company from such allegations.