Huawei looks to Middle East and Southeast Asia for growth as headwinds in West gather strength
- Shenzhen-based Huawei and its crosstown rival ZTE are likely to lose access to the German market, according to report
- As Europe dials up its scrutiny of Chinese telecoms equipment, Huawei is expected to accelerate its push into other markets
With Huawei Technologies Co expected to face more headwinds in Europe with a potential German ban on its products and the cancellation of its plan to build a research facility in the UK, the Chinese telecoms giant will likely turn its attention to other regions, analysts say.
Shenzhen-based Huawei and its crosstown rival ZTE are likely to lose access to the German market as the country’s government mulls removing the two Chinese companies from its 5G networks, local media Zeit Online reported on Monday, citing government sources.
A spokesperson at the Chinese Embassy in Germany said China was “very perplexed at and strongly discontent” with the German government’s decision, which was likely fuelled by “anti-China forces”, according to a notice published on the Embassy’s website on Tuesday evening.
In an emailed statement on Wednesday, a Huawei Germany spokesperson cited the firm’s “security record in Germany and around the world for the past 20 years”, and called for “clear standards, certifications and verifications” to address security concerns.
Meanwhile, Huawei has reportedly shelved a plan to invest 1 billion pounds (US$1.2 billion) in a Cambridge research facility as it moves to reduce its presence in the country, according to a report by the Daily Telegraph.
If Germany, China’s largest trade partner in Europe, goes ahead with a ban it would mark one of the biggest setbacks for the US-sanctioned Chinese telecoms maker’s business in the region.