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Huawei sees profits up a third and tackles 'spying' concerns

The US government has put blocks on Huawei's expansion plans in the US

China's Huawei is forecasting a 33 percent jump in profits for last year, helped by strong performances in Europe and Japan.

The networking giant expects to make a net profit of 15.4bn yuan (£1.5bn) for 2012. Huawei's final audited results for 2012 will be released in April. Huawei said it expects sales to grow between 10 and 12 percent in 2013.

Smaller Chinese rival ZTE expects to make a 2.9bn yuan (£293 million) loss in 2012, it said last weekend.

Huawei has also entered the smartphone market and expects to launch a new range of phones in Europe later this year.

Cathy Meng, Huawei's chief financial officer, who is the daughter of company founder Ren Zhengfei, said the firm now planned to release further details of the ownership of the company.

The move is to tackle US government accusations that the company is controlled by the Chinese military and its spying network - something that Huawei denies.

Zhengfei was once an officer in the Chinese army and personally owns 1.4 percent of the company. "In the future, we will also disclose other details, such as our board members' shareholdings," Meng told the Financial Times.

The US government has put blocks on Huawei's expansion plans in the US, including supplying US telcos. The US government says it fears that China will steal US corporate and government data via bugged Huawei equipment.

A UK parliamentary committee was due to deliver its own findings around the same issue to prime minister David Cameron by Christmas.


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