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      Reports of NSA spying won't impact growth: Huawei

      2014-04-24 10:03 Global Times Web Editor: qindexing
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      China's Huawei Technologies Co, the world's No.2 telecoms equipment maker, on Wednesday shrugged off analysts' concerns that its growth will suffer from media reports alleging the US accessed servers at its Shenzhen headquarters.

      The New York Times and Der Spiegel last month cited documents leaked by former US security contractor Edward Snowden as saying the National Security Agency (NSA) obtained sensitive data and monitored Huawei executives' communications.

      Last year's revelations of global US surveillance programs have undercut some US-based multinationals' businesses in China, as the Chinese government pressured domestic enterprises to avoid purchasing US products.

      Analysts at a conference in Shenzhen, South China's Guangdong Province, raised concerns about Huawei's business suffering from similar worries over the security of its products, following the New York Times and Der Spiegel reports.

      But Eric Xu, Huawei's executive vice president and one of its rotating CEOs, expressed confidence in Huawei, which has been long hounded by US lawmakers' accusations that it is a tool of Chinese State espionage, would not be negatively affected.

      "On the NSA ... it does not have a big impact on business growth," Xu said at a conference on Wednesday in Shenzhen.

      "But it has an impact on workloads, in communicating with and persuading current industry stakeholders (that products are secure), and that's more tiresome."

      Xu also revealed that the private company's system of rotating CEOs would end and Huawei eventually would be managed by a leadership team rather than an individual.

      While Xu gave no indication of when the new management structure would be in place, his comments shed some light on how the company intends to permanently replace powerful founder Ren Zhengfei, 69, as CEO.

      "I can clearly tell everyone here that in the future the successor to Mr Ren will not just be one person," Xu said.

      Huawei introduced a rotating CEO system in 2011, according to which three top executives, Xu and deputy chairmen Ken Hu and Guo Ping, take turns as acting-CEO for six-month stints. Ren maintains his CEO title.

      Ren has ruled out handing over the reins to his son or daughter who work at Huawei.

      Whoever runs the company in the years ahead will be looking to move beyond the core carrier business and seize opportunities in enterprise as well as smartphones, which contributed the most to revenue growth in 2013.

      Huawei expects its enterprise business revenue to reach $10 billion in five years, said Xu, from roughly $2.45 billion in 2013.

      Its carrier business, where revenue growth is slowing, will shrink to 50 to 60 percent of its total revenues in 2018, said Xu, from about 70 percent last year.

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