Huawei says probe not likely to affect business

HANGZHOU, China - Reuters

Huawei’s senior vice president says a probe by a US Congressional Committee is unlikely to affect its businesses in other overseas markets. REUTERS photo

Huawei Technologies Co Ltd, the world’s No.2 telecom equipment maker, said yesterday a probe by a U.S. Congress committee over security issues is unlikely to affect its businesses in other overseas markets.

Earlier this month, a U.S. Congress committee issued a report urging U.S. companies to stop doing business with Huawei and ZTE Corp, the world’s No.2 and No.5 telecom equipment vendors respectively, on security concerns.

Canada and Britain

The move has prompted Canada and Britain to also look into similar issues, sparking some concerns that it could affect Huawei’s business in other markets.

“No, I don’t think there will be an impact,” Huawei’s Senior Vice President Zhang Chunxiang told Reuters, responding to a question on whether its other overseas business would be hit as a result.

Zhang, who spoke on the sidelines of a business event in China’s eastern city of Hangzhou, said both sides were still talking and that the U.S. investigation was a sign of trade protectionism.