Mainland telecommunications equipment supplier Huawei Technologies is counting on strong growth in its international business to drive future earnings growth. Huawei exective vice-president William Xu Wenwei is expecting revenue from international operations to exceed US$600 million by the end of the year, or about 20 per cent of the company's total. 'We're targeting international business to grow by some 80 per cent to 100 per cent every year,' he said, predicting it would be a major contributor to earnings growth. Last year, Huawei generated revenue of US$328 million overseas, or about 10.6 per cent of its total revenue of US$3.08 billion. Total revenues were up 15.9 per cent last year over the previous year, while net profit was up 67.5 per cent to US$578 million from US$345 million in 2000. Mr Xu said the collapse of the global telecoms market had made carriers increasingly cautious about capital spending, and more open to less expensive providers such as Huawei. 'Everybody knows it is now the winter for the information-technology industry. Carriers are very cautious about return on investment. Whether from developed or developing countries, carriers welcome equipment vendors like Huawei,' he said. Its high-quality, advanced products and cost-effective services had allowed Huawei to double overseas revenues, he said. Huawei plans to invest more than 10 per cent of its revenue in research and development (R&D), after nearly doubling R&D to US$342 million last year. The company has a reputation for aggressive selling of its products overseas, a fact confirmed by Singapore Telecommunications (SingTel), a leading client. 'Huawei management told us that whatever products Cisco has, we have them and we have them cheaper,' SingTel chief operating officer Lim Toon said. He said SingTel's Australian subsidiary Optus and associates such as Thailand's AIS also used Huawei's intelligent network products. Meanwhile, Huawei had delayed its overseas listing plan due to poor market sentiment.