US Republican Senator Jon Kyl is leading a bid to block Chinese telecom equipment manufacturer from supplying US mobile operator Sprint Nextel.
Kyl and seven other Republicans have raised a ‘not-welcome’ sign as Huawei tried once again to enter the…
US Republican Senator Jon Kyl is leading a bid to block Chinese telecom equipment manufacturer from supplying US mobile operator Sprint Nextel.
Kyl and seven other Republicans have raised a ‘not-welcome’ sign as Huawei tried once again to enter the lucrative US market.
In 2008, Huawei dropped a bid to take over the 3Com after the US government began investigating whether the acquisition would pose national security risks.
Earlier this year, Huawei lost bids to buy the assets of the software maker 2Wire and Motorola’s wireless equipment unit. 2Wire was sold to UK set-top-box manufacturer Pace Microtech, and the Motorola business went to Nokia Siemens Networks despite Huawei reportedly having made a higher offer.
The senators argued that Huawei has had strong relationships with Saddam Hussein in Iraq, the Revolutionary Guard of Iran and the People’s Liberation Army of China, adding that it has supplied the Taliban with communications equipment.
Huawei has also been subject to US-based lawsuits from Motorola and Cisco over charges of industrial espionage.
In an open letter to US Treasury Secretary Tim Geithner that was copied to senior intelligence officials, Kyl and the other senators wrote: “We are concerned that Huawei’s position as a supplier of Sprint Nextel could create substantial risk for US companies and possibly undermine US national security.”
They also argued that the proposed relationship with Sprint Nextel could: “present a national security threat for technology leakage or enhanced espionage against the United States”. Furthermore, they lobbied for the company to be barred from any strategic relationships with American telcos and blocked from taking any business ownership stakes in US companies.
This move is bound to affect Sino-American trade relations, and is seen as being more to do with protecting US industry than safeguarding national security.
A representative of Huawei told TelecomFinance: “We are disappointed to learn that old mischaracterizations about the company still linger and we want to reiterate some of the facts.
The truth is that Huawei is an employee-owned private company. Government or military organizations do not hold any shares, or control the company in any form. As a leading global telecommunications solutions provider, Huawei abides by and respects third-party IPR (intellectual property rights) and strives for continuous innovation to maintain our leadership position. Huawei has not been found in violation of IPR infringement by any court in any country nor have we been found to have acquired inappropriately any third-party proprietary information.”
The representative continued: “We strictly comply with all the laws, regulations, and related trade compliance regulations established by the UN and all the countries where we operate including the US. This also applies to Iran, where our business operation is similar to other western vendors in the market. We are deeply committed to long-term investment in North America, and will continue to contribute to this market by providing innovative communications network solutions and services to address our customers’ challenges and needs. Huawei strives to be open, transparent and is committed to cooperate fully with all stakeholders to advance the US telecommunications industry.”
The representative refused to say what specific contracts Huawei was involved in with Sprint Nextel.
Sprint Nextel declined to comment.
