A board member of Chinese equipment vendor Huawei’s Australian unit has recommended floating the subsidiary to alleviate concerns over transparency.
Earlier this year Huawei was blocked by the Australian government from bidding in the tender to work…
A board member of Chinese equipment vendor Huawei’s Australian unit has recommended floating the subsidiary to alleviate concerns over transparency.
Earlier this year Huawei was blocked by the Australian government from bidding in the tender to work on its US$37.5bn National Broadband Network, with reports suggesting that security concerns were to blame.
Huawei has been dogged by various national security fears in different countries around the world, particularly the US, as it looks to expand its global footprint.
The Australian Financial Review (AFR) reported that John Brumby, a member of Huawei’s Australian board, has proposed a localisation plan to the company to allay any concerns over Chinese investment.
He has reportedly urged the company to build a research and technology centre, and suggested an IPO on the Australian Stock Exchange in five to 10 years.
Huawei was unable to comment before the press deadline.
Reuters reported that Huawei was not considering an IPO immediately, citing two sources familiar with the company’s plans, but said a local listing was an option in the longer term.
An Australian MP, Malcolm Turnbull, was cited by AFR saying that Chinese companies should be more open and transparent about their activities, and be more forthcoming with the media. Turnbull said this would reduce anxieties around the company.
