Huawei sets up US enterprise unit

Dylan Bushell-Embling
06 Oct 2011
00:00

Despite setbacks Huawei is keeping its focus on expanding into the US market, and plans to use a new enterprise business group to carve out more of a share share.

The company plans to use the new group to pursue sales of equipment including telephone systems and videoconferencing centers to US businesses, New York Timesreported.

The move follows the establishment of a development center in Silicon Valley last year, which now employs around 1,000 staff.

Huawei expects to earn $4 billion from enterprise sales this year, and is aiming for $7 billion in the next, but makes very little from the US market.

The company has been grappling with suspicion in the US, with lawmakers and others accusing it of having ties to the Chinese military, and of unfairly benefiting from the availability of low-interest loans from the state. Rival vendors have also thrown up opposition to its encroachment into the market.

Huawei has repeatedly denied the allegations, including suggestions of military influence at the company. The vendor has in the past been prevented from winning US business, including a potential $7 billion contract with Sprint, due to related concerns about the security of Huawei kit.

To address these worries, Huawei in August also hired the former UK government CIO, John Suffolk, as its security chief.

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