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Huawei not expecting growth in US this year as security concerns effectively freeze sales

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Huawei (STOCK)
Huawei (STOCK)

Huawei isn't expecting to see any significant business growth in the United States this year, with the telecom supplier attributing its stagnant performance to national security concerns raised by the US government. Speaking to The Wall Street Journal, wireless network marketing VP Bob Cai made it clear that Huawei has no illusions about its current predicament, which has left the company effectively shut out of sales to government agencies and American businesses. In October of last year, a US Congressional report found that Huawei and fellow Chinese manufacturer ZTE pose a national security risk to US interests. Tensions between both countries have escalated in the months since, with lawmakers recently signing legislation that calls for the Department of Justice, Department of Commerce, NASA, and the NSF to assess potential risks before purchasing any equipment sourced from China.

Prospects are better for Huawei overseas, however. Cai told the WSJ that his company expects to see worldwide growth of at least ten percent in 2013. Huawei showed strong financial gains last year, evidence that the US controversy hasn't yet managed to hamper its operations elsewhere in the world.