A Chinese industrial champion opens up a bit on its way to world domination
Apr 20th 2011 | HONG KONG | from the print edition
ANOTHER annual report sent out in the season when countless companies worldwide are publishing them is at risk of being filed in the bin. Not so if the company is Huawei and the report is intended to make a company that reflects the best of China’s manufacturing prowess, while being a prime example of its secretiveness, seem normal.
The telecoms-equipment maker’s financial performance is impressive enough to make the report worth reading: revenues were 185 billion yuan ($27.4 billion), having grown by an annual average of 29% in the past four years. The growth rate for profits has been 56%. Having just passed Nokia and Siemens, Huawei looks on track to overtake Ericsson, the industry leader, this year.
But it faces some big impediments, perhaps the most important being the concerns of many governments, notably America’s and India’s, about a private company suspected of links to the security apparatus of a country said to be conducting sophisticated hacking. Because of such worries, Huawei’s efforts to buy American companies have been blocked and some sales have been lost.