Huawei asks for US probe to dispel 'untrue' concerns

Updated: 2011-02-26 01:52


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BEIJING - China's telecom giant Huawei issued an open letter on Friday saying it welcomes investigations from the US government, if that could dispel misperceptions about the company.

In the announcement posted on its website, deputy chairman of Huawei, Ken Hu, said he regretted that the "long-standing and untrue rumors and allegations" in the US had stymied Huawei's normal commercial operations in that country.

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Huawei this week dropped the acquisition of an insolvent American firm, 3Leaf Systems, after "national security concerns" reportedly prompted the Committee on Foreign Investment in the United States (CFIUS) to discourage Huawei from completing the agreement.

Huawei has long been badgered by the claim that it is backed by the Chinese government, an accusation that has exerted ruinous effects on the company's acquisitions of foreign companies.

In 2008 and 2010, similar concerns blocked the Huawei buyout of 3Com and a network business of Motorola, respectively.

"We sincerely hope that the United States government will carry out a formal investigation on any concerns it may have about Huawei," Hu said in the letter, adding that the probe would only prove "Huawei is a normal commercial institution."

In the letter, Hu argued that the allegation of Huawei's ties with the Chinese military has centered on the contortion of the fact that Huawei's chief executive, Ren Zhengfei, once served in the People's Liberation Army.

"Mr. Ren is just one of many CEOs around the world who have served in the military," said Hu, noting that Huawei is a civil-use telecom solutions provider and has no involvement in any military technologies.

Further, Hu denied that Huawei had received improper financial support from the Chinese government, saying the tax incentives it receives are similar to those that the US gives to its high-tech companies.

Established in 1988 in China's Shenzhen special economic zone, Huawei Technologies Ltd. now stands as a leading telecom and network equipment provider that has sold products to over 100 countries.

Huawei, earlier this week, confirmed it had bid for the phone network installation for the London Underground.


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