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Huawei considers IPO to quell suspicion of involvement with China and increase opportunity in U.S.


Rumors by Andrew Kameka on Friday October 05, 2012.

rumors · huawei news · industry news · andrew kameka

Please note that this story is based upon rumor and/or speculation.
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Huawei has struggled to overcome U.S. suspicion that it has ties to the Chinese government. The telecommunications giant is now considering becoming a publicly traded company to help ease fears that it might be used to disrupt the U.S. communication infrastructure. The Wall Street Journal reports that Huawei may file an IPO in an attempt to appear more transparent and open to criticism, which could lead to more business opportunities in the U.S.

Huawei has struggled to win business in the U.S. due to persistent questions from lawmakers about what kind of security risks the equipment maker might pose. The U.S. House intelligence committee announced in November 2011 that it would investigate Huawei because of fears that the company might install spy tools or insecure backdoors into telecommunication equipment in the U.S. Despite repeated claims that it has no involvement with China's military or espionage activities, Huawei has remained under a cloud of suspicion from lawmakers, which has prevented the company from winning contracts to build network infrastructure for U.S. firms.

According to the Wall Street Journal's sources, Huawei believes being a publicly-traded company might demonstrate openness and a commitment to financial interests, not political or military gains. Huawei is reportedly meeting with banks to decide how it should pursue an IPO in the U.S., which would require the company to disclose information that might help alleviate some fears. Huawei would face more scrutiny and might still find it difficult to convince lawmakers it has no nefarious intentions, but an IPO may be a necessary step to gain access to the U.S. market.

source: Wall Street Journal

 
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