Huawei dismisses growth concern
Print Edition
CHINA’S Huawei Technologies Co, the world’s No.2 telecoms equipment maker, yesterday shrugged off analysts’ concerns that its growth will suffer from media reports alleging the United States accessed servers at its Shenzhen headquarters.
The New York Times and Der Spiegel last month cited documents leaked by former US security contractor Edward Snowden as saying the National Security Agency obtained sensitive data and monitored Huawei executives’ communications.
Last year’s revelations of global US surveillance programs have undercut some US-based multinationals’ businesses in the world’s second-biggest economy, as Beijing pressured Chinese enterprises to avoid buying American products.
IBM Corp reported last week that China earnings for the first quarter fell 20 percent, the third consecutive quarter of 20 percent declines, as it struggled to restore trust in the wake of Snowden’s leaks.
Analysts at a conference in Shenzhen raised concerns about Huawei’s business suffering from similar worries over the security of its products, following the New York Times and Der Spiegel reports.
But Eric Xu, Huawei’s executive vice president and one of its rotating CEOs, expressed confidence Huawei would not be negatively affected.
“On the NSA ... it does not have a big impact on business growth,” Xu told an analyst conference yesterday in Shenzhen, Guangdong Province.
“But it has an impact on workloads, in communicating with and persuading current industry stakeholders (that products are secure), and that’s more tiresome.”
Xu also revealed that the private company’s system of rotating CEOs would end and Huawei eventually would be managed by a leadership team rather than an individual.
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