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Huawei Hires Former EU Ambassador to ChinaSHENZHEN, Oct 14, 2013 (SinoCast Daily Business Beat via COMTEX) -- Chinese telecom equipment and network solution provider Huawei Technologies Co., Ltd. is said to have hired Sergey Abou, the former EU ambassador to China, to serve as its consultant for Brussels. The Shenzhen-based firm confirmed the report in an interview recently and in line with a spokesperson of it for Brussels, Sergey Abou will mainly provide general strategic suggestions on problems regarding to the global economy and politics to it. Sergey Abou declined to make a comment and from 2005 to 2011, he served as the EU ambassador to China. Huawei meets a list of difficulties in expanding in the US market and in order to reduce the impact, it attaches more importance to tapping the European one, planning to provide 5,500 jobs there over the coming five years. However, it is criticized by the European Commission (EC) and Karel De Gucht, an European trade commissioner, said in May this year that both Huawei and its domestic archrival ZTE Corp. (SHSE: 000063 and SEHK: 0763) dumped products in the European market. And in line with industry observers, there will be great possibility for the EU to trigger an investigation on sales activities of it in Europe. The German media said days ago that as the former ambassador to China, Sergey Abou was allowed to prove suggestions to Huawei earlier this year. However, he had been informed in written form that he would be banned to serve as a representative of the Chinese firm when the latter came into contract with the EU. Available information shows that Huawei spent EUR 3 million, or about USD 4.06 million, in lobbying in Europe in 2012 and the amount is about twice that in the US market. People in the know disclosed that it sent seven lobbyists to the European Parliament. In addition, it hired five consulting firms to lobby in the EU. And despite that Sergey Abou was banned to lobby for it directly, he would help it with his rich experience. There was huge interest conflict risk and he knew where and how to start. And actually, it had become a trend for the EC officials to become a lobbyist of a firm after they left the EC. Huawei is fueling expansion in the Southeastern Asian market, too. It signed a cooperation agreement with Khazanah, a strategic investment fund controlled by the Malaysian government, not long ago and under terms of the agreement, it will build a data custody and logistics center in the south of Malaysia. (USD 1 = CNY 6.12 and USD 1 = EUR 0.74) Source: www.163.com (October 14, 2013) |