Undeterred by lingering security concerns that have hurt its business in the United States, Huawei Technologies aims to push ahead with expansion plans in the country.
Shenzhen-based Huawei, the mainland's largest telecommunications equipment manufacturer, reaffirmed that commitment yesterday after a roller-coaster week that saw it lose an acquisition and, in another case, win a lawsuit against a former US partner. On Monday, the company reluctantly abandoned its US$2 million purchase of 3Leaf Systems, a bankrupt technology firm, after initially refusing to comply with a request by the Committee on Foreign Investment in the United States, an inter-agency group that reviews investments in US businesses, to withdraw from the deal because of national security concerns.
'This was a difficult decision,' Bill Plummer, vice-president of external affairs at Huawei USA, said. 'The significant impact and attention that this transaction has caused were not what we intended.'
On Wednesday, a US district court granted Huawei a preliminary injunction that prevents any of its trade secrets from being disclosed by former partner Motorola to rival Nokia Siemens Networks, which is buying the US firm's wireless network business.
'The order also requires Motorola to hire a qualified third party to ensure Huawei's confidential information is securely removed,' Huawei global spokesman Ross Gan said. 'It gives us the confidence to increase our investment in the US.'
Huawei had about 1,500 staff in the US at the end of last year. It has eight facilities in the US, including three research and development centres. In 2009, its investment in research and development in the country grew 66 per cent to US$62 million.