ZTE chairman wants better protection from foreign competition

18 Oct 2005

The co-founder and chairman of Chinese equipment manufacturer ZTE Corporation has called upon the country’s government to increase efforts to protect local businesses from foreign competition. In a rare interview with the Financial Times, Hou Weigui said that while China is now open to international equipment makers, not enough is being done to support and develop local companies. His criticisms of Beijing’s telecoms policy reflects growing concern among local suppliers about the rising tide of foreign vendors in the country and their dismay that state-owned telcos often favour international firms at the expense local equipment makers. Annual expenditure on telecoms in China is running at over USD20 billion per annum and any reaction from the government to introduce measures to allay ZTE’s concerns could have a serious impact on the likes of Nokia, Lucent Technologies and Alcatel.