A U.S. congressional report has reportedly determined that two major Chinese companies, Huawei Technologies and ZTE Corp, pose grave economic and security risks to the United State and should therefore be prevented from further making inroads in the country, reports said.
China's Huawei Technologies, one of the world's biggest telcos, is not giving up on Australia despite earlier decision by the federal government this year to bar the company from participating in the $37-billion national broadband network (NBN) roll out.
Former Victorian Premier John Brumby, who now sits as director in Huawei Australia board, said on Tuesday that board members of the firm are mulling ways to increase its business operations in Australia.
He made the comments following the rebuff from Canberra that disallowed Huawei from participating into the nationwide build up of the NBN. Prime Minister Julia Gillard cited security reasons for the controversial move.
Huawei faces the same problem on its U.S operations, with the U.S. Congress probing allegations that the company, along with another Chinese firm ZTE, are conduits for Beijing to conduct economic espionage.
Despite the unusual regulatory focus it attracts in Australia, Huawei, according to Business Day, realised $3.6 million in profits from revenues of $230 million in 2011.
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The whole pie of Huawei's Australian income will be injected back in Australian operations, Mr Brumby said, adding that the decision was made by Huawei Chief Executive Ren Zhengfei.
At the moment, Huawei Australia is considering two strategies that would further cement the firm's local presence and one is "to see a major Huawei investment in a research and development centre here in Australia," Mr Brumby was reported by Fairfax as saying.
"Second, I would hope in five years to 10 years' time we would see a local float of the business," he added.
Hopefully, such initiatives "would do much to dispel the concerns that could remain about China, about Huawei and give Australians the chance to invest in one of the world's largest telecommunications companies," Mr Brumby said.
In the process, Huawei is looking for future opportunities that would give the firm a role in delivering high-speed broadband access to Australians via the NBN, he added.
"I think this is more about the security relationship between Australia and China and I would hope over time these things can be worked out at a company to government level and then a government to government level," the Huawei board member was quoted by The Australian as saying on Tuesday.
Yet apart from ramping up their local operations, Shadow Minister Malcolm Turnbull told the Australian Financial Review (AFR) in an interview Tuesday that Chinese companies would gain more domestic support by practicing a little bit of transparency.
"(China) would do well to reflect on the state of its own public diplomacy and corporate communications, in Australia and perhaps generally," Mr Turnbull told The AFR.
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