Eric Xu, the Executive Vice President of the China largest telecommunications equipment manufacturer Huawei Technologies suspected of spying for PRC, announced that the company stops its trading activity on the US market. However, the top manager didn’t give any other details concerning the company’s development and sales in USA.
Previously Huawei was intending to occupy a significant part of the American market of the telecommunications equipment, but it faced the US authorities and other businessmen resistance. Despite the fact that the company collaborates with the major mobile operators worldwide, the leaders of the USA market refused to work with Huawei.
In March one of the US largest telecommunication companies refused to buy Huawei equipment, right after the refusal of Deutsche Telekom and Level 3.
It’s the American authorities that insisted on the completing such agreement. In 2011 the US Intelligence launched an investigation as a result of which Huawei and other Chinese telecommunications equipment manufacturer ZTE came under suspicion. The reason of the investigation was worries about using these companies by China for the cyber attacks or espionage. In October 2012 the US Congress made a pronouncement that Huawei and ZTE constitute a menace to the national security. The legislators prohibited these companies from contracting with American partners and also obligated to carry out their mergers and acquisitions in the United States.
The Huawei and ZTE representatives denied all accusation of the espionage and called the authorities measures politicized.