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Huawei predicts US sales stall following government crackdown

03 Apr 2013
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Huawei marketing vice president has reported that the company doesn't expect US wireless network sales to grow because of government crackdown on Chinese manufacturers.

Bob Cai said in a recent interview that Huawei's wireless business has been stifled by US sanctions on Chinese technology makers. Cai said that the firm has failed to gain the support of US companies because of the sanctions.

Last October, US officials threatened to block sales of Huawei products in the US for security reasons. US Congressional members feared that Huawei's close relationship with the Chinese government could lead to potential spying issues.

A US investigation into the spying claims later found that Huawei was in not guilty of the charges. However, the investigation brought up the possibility that Huawei was purposefully putting security vulnerabilities into its products.

According to the investigation's report, Huawei could have been potentially creating vulnerabilities that could later be used for backdoor hacks by the Chinese government.

Huawei hit back at the claims and called out the US for having a protectionist agenda. The Chinese tech firm said that US politicians were shutting it out of the market to give US companies an advantage in the field.

Cai said that the continued attempts to lockout Chinese firms from the US market will hurt Huawei's sales this year. While the US market is expected to suffer, Cai believes that international sales will be strong in 2013.

He told the Wall Street Journal that Huawei expects global wireless telecom sales to grow 10 percent for the year. Cai said that Huawei's long-standing relationships with European wireless carriers will propel sales.

Cai's interview comes on the heels of a recent US spending bill which looks to snuff out the sale of Chinese tech to the US government. The recent spending bill requires government agencies to get clearance from law enforcement before buying any IT hardware made outside the US.

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James Dohnert
About

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

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