Paranoid U.S. lawmakers want to keep Huawei out of the U.S. — and their efforts are working out pretty well so far.
According to Huawei marketing VP Bob Cai, the company doesnt expect any growth to come out the U.S. this year because it’s been effectively shut out of the country.
Much of the current predicament ties into a congressional report that argued that Chinese companies like Huawei and ZTE pose significant threats to U.S. national security. These companies “cannot be trusted to be free of foreign state influence,” the report said. (Huawei, of course, denied those allegations.)
While Congress has no proof that Huawei or ZTE are dangerous, it’s easy to see where U.S. lawmakers are coming from: With countless security breaches bring traced to China as of late, companies are understandably hesitant to use Chinese products to handle sensitive information. Huawei may be innocent, but it’s guilty by association.
European countries, however, don’t have the same concerns. According to Cai, Huawei’s wireless networking unit could grow as much as 10 percent this year due to expansion in Europe and elsewhere. (Huawei generates as much as 70 percent of its revenue abroad, in particular, in Western Europe.)
Of course, no growth in Europe will help Huawei gain a real foothold in the U.S., at least while lawmakers are shooting down any deal that involves a Chinese company.
Our upcoming GrowthBeat event — August 5-6 in San Francisco — is exploring the data, apps, and science of successful marketing. Get the scoop here, and grab your tickets before they're gone!