Is considered to pose a threat to US national security | Huawei tightens its spending in the United States

According to informed sources and documents issued by the government, Huawei, a Chinese company that was considered by the U.S. Congress as a potential threat to U.S. national security, recently made new moves. The Washington, DC office fired five employees and cut its lobbying spending in the United States.

According to the "New York Times" report, Huawei, the world's third-largest smartphone maker, fired Bill Plummer, the company's vice president of foreign affairs, and four other Washington DC office employees.

At the same time, Huawei also cut its lobbying expenses. According to public information, the company’s lobbying expenses decreased from 348,000 U.S. dollars in 2016 to 60,000 U.S. dollars in 2017.

A Huawei company spokesperson said: 'Like any company, we have been evaluating our organizational system and using existing resources to support our business strategy and goals.'

US national security experts do not want to see equipment manufactured by Chinese manufacturers installed in the US communications network. This is one of the reasons why Huawei has tightened its spending in the United States.

In February of this year, two Republican senators enacted relevant laws to prohibit the United States Government from buying or renting communications equipment manufactured by China’s Huawei and ZTE Corporation because of concerns that the two Chinese companies would use technical means to monitor US officials.

Such concerns have also spread to the mobile phone sector. In January of this year, under the scrutiny of several congressmen and federal agencies, the large American telecom operator AT&T was forced to cancel the plan to sell Huawei mobile phones to its consumers.

This week, the U.S. government announced that it would prohibit U.S. companies from selling hardware facilities and software services to ZTE Corporation within seven years. The U.S. government accused ZTE of illegally sending U.S. goods to Iran and breaching an agreement concerning the punishment of employees.

Although it did not successfully enter the US market, Huawei’s net profit in 2017 reached US$7.3 billion, an increase of 0.4% from 2016. This increase was partly due to the decrease in net financing costs and the increase in profits.