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Huawei Files Complaint Against ZTE

China's Huawei Technologies Co. Ltd. had accused ZTE Corp. of unfair competition in a recent deal to build a GSM network in Nepal, and had filed a complaint, the China Business News reported, citing unidentified sources.

 

"Huawei has filed complaints to the China Chamber of Commerce in Nepal, claiming ZTE's US$3.9 million bid for the national GSM network in Nepal in April was lower than actual production costs," the Shanghai-based paper quoted the source as saying. For the same bid, Huawei's proposal was US$12 million, the paper added.

 

ZTE also won a national CDMA network from Nepal Telecom last November with a bid of US$29 million against Huawei's US$42 million proposal. "It is very natural for companies to offer low prices on entering a country but as a dual-listed company in both China and Hong Kong, ZTE should not offer a price lower than production costs," said a ZTE official who declined to be named.

 

No one from Huawei Technologies was immediately available for comment.

 

ZTE Corp.'s overseas sales last year were around US$2.14 billion, accounting for 78.4 percent of its total sales of US$2.7 billion. Huawei Technologies' overseas sales hit US$2.28 billion, accounting for 40.86 percent of the total of US$5.58 billion.

 

(Shenzhen Daily June 10, 2005)

 

Huawei's Overseas Sales to Record US$5b
Huawei Leaps into ASEAN Markets
ZTE to Provide Services to Nepal
Huawei to Set up Regional Headquarters in Hungary
Huawei Wins India Contract
ZTE Records over 20% Growth
Huawei to Up Investment in Booming Market
ZTE Launches Drive into Indian Market
ZTE Starts Production at New India Factory
Huawei Aims to Boost Brand Resonance
ZTE Corp. Sees Net Profit up More than 50%
Huawei Funded for Overseas Expansion
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