Huawei eyes business breakthrough in Russia

By Wang Yi Source:Global Times Published: 2019/5/30 21:43:40

A Huawei logo on a paper bag in a store in Hangzhou, East China's Zhejiang Province, as seen on Wednesday Photo: VCG

Under the pressure of a US ban, Chinese 5G leader Huawei is expected to further expand its business and make new breakthroughs in Russia, which analysts attributed to the company's technology advantages and a welcoming attitude in the market.

The world's largest telecommunications equipment manufacturer has become the most active supplier in Russia's business-to-business (B2B) online bidding, reported on Wednesday, citing B2B-Center, the largest online purchasing platform in Russia. 

In the past six years, Huawei has participated in 550 telecommunications equipment bidding events organized by large Russian telecommunications companies, the platform's survey showed.

The Russian market has a positive attitude toward Huawei as well. Huawei's smartphone sales are rising in Russia while other brands' sales are falling this year, according to media reports.

Huawei captured the top spot in the Russian smartphone market in the fourth quarter of 2018 with a share of 28 percent, while Samsung's share was 26 percent and Apple's was 11 percent, Counterpoint reported in February 2019.

Huawei has also passed technology inspections to sell up to 25 billion Russian rubles ($384 million) worth of equipment to Russian network provider MTS, said media reports. 

Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Thursday that Russia has great demand for telecommunications technology and equipment. Chinese companies like Huawei and ZTE are all doing well there.

"To cooperate with Chinese companies seems to be a better choice for Russian companies, because these companies have a technology advantage," Xiang said.

Huawei has built up an advantage in Russia with its quality products and service in recent years. During the World Cup in 2018, the company delivered high-quality service there, said Fu Liang, a Beijing-based independent telecom industry analyst.

Although US allies are not following Washington's plan to isolate Huawei as the US expected, compared with them, Russia is a more independent country that is on good terms with China. Huawei could make breakthroughs in that market, Fu said.

China and Russia are reported to sign bilateral deals in various areas during Chinese President Xi Jinping's state visit to Russia from June 5 to 7.

According to media reports, Huawei has also sent 140 technology cooperation requests to Russian universities, and three Russian universities have confirmed that they are in close cooperation with Huawei. 

Fu said that Huawei always attaches importance to Russia's talent advantage in fundamental research, and further cooperation in research and development is expected.

Posted in: ECONOMY

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