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Friday, October 25, 2013

Huawei in for the long haul to build its image in the US

Want China Times, Staff Reporter 2013-10-25

A Huawei ad. (Photo/CFP)

Although Chinese multinational networking and telecommunications equipment and services company Huawei has had considerable success in expanding its business internationally, it has been unable to enter the United States' market till now, having failed to ease the US government's concerns regarding internet security.

Huawei's founder and president, Ren Zhengfei, is a former People's Liberation Army officer, but has repeatedly denied that his company has any ties to the Chinese military.

To win the trust of the US government and consumers in the country, Huawei now plans to facilitate the establishment of international standards for internet security, but this will be a long and difficult battle.

According to the Chinese-language Global Entrepreneur magazine, Huawei has tried to bid for US projects several times but has been unsuccessful in each instance mainly on account of US regulator concerns that the country's internet security could be jeopardized if Huawei was put in charge of key infrastructure projects.

In response, Huawei has begun lobbying and building its public image in a bid to show that its products and services will not be a threat to the US.

Huawei has also procured more than US$6 billion worth of processors and other accessories from Broadcom, Qualcomm and other local US suppliers.

Huawei CEO Gou Ping was recently interviewed by Fortune magazine, where he sought to assuage concerns and present Huawei's credentials.

Earlier this week, Huawei issued Cyber Security Perspectives to tout the establishment of international standards for internet security through a collaboration between the industry and government supervisory agencies.

Although the proposal is unlikely to turn the tide for Huawei in the short term, the company is at least aware that its political and public image cannot be transformed overnight.

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