Huawei to Push More Investments in the European Market
Shenzhen telecommunications equipment maker Huawei Technologies Co. is planning to increase their investment and hiring in Europe as a part of their change of perception of the company. This is also a part of the company’s plan to build trust with foreign customers and governments as Huawei faced allegations that the company is a security risk and a threat of a European Union investigation on a rumor that China is planning to dump or subsidize products that pertains to mobile telecom networks.
As part of the plans, Huawei will be increasing their investment in European research and development and extend its employee incentive plan to key non Chinese employess to attract and possibly keep top talent. The openness of the company comes as the company faced scrutiny in Europe where the growth has pushed competitor’s sales even more. And in the US, Huawei was shut out successfully out of the telecom equipment market after a congressional report said that the products manufactured by the company can be used in spying.
Based on a market research, Huawei was able to grab around 22 percent of the mobile infrastructure spending in Europe, Africa and the Middle East 12 percent up compared to 2010. A contract in the North America market where Huawei was able to get only 2.8 percent share of the market in 2013 in which the company then decided to pull back their investments there.