Huawei responds to article

I would like to address claims made about Huawei in your article "Cisco showcases big bets on collaboration", which are inaccurate and totally without foundation.

Contrary to statements included in your article, Huawei is a company 100% owned by our employees and no government agency or other organizations hold any interest in our company. As a fellow employee, Mr. Ren Zhengfei, founder of Huawei, owns a 1.64% share.

The credits granted to Huawei customers by a number of public and private sector financial institutions are export buyer credits provided directly to those customers as part of a normal financing transaction. As such, our customers are required to sign a contract directly with the banks as part of a standard commercial transaction, and it is our customers that will ultimately repay the loans. This is a common business practice in countries around the world, particularly within the telecommunications industry, and to assume otherwise is a blatant distortion of facts.

It is a matter of public record that we release financial reports audited by KPMG each year. As such, we fully disclose our financial situation in these reports. In April 2010, we will issue Huawei's 2009 financial report and I can assure you that it will be clear that our financing comes from normal commercial borrowings or our own revenues.

Huawei's success is based solely on our unwavering commitment to customer-centric innovation and to helping our customers realize business success. We will continue to work closely with our operator customers in our joint efforts to bring the benefits of modern telecommunications services to people around the world.

Mr. Hua Liang
Chief Financial Officer
Huawei