China's largest telecom maker eyes Japan

Huawei already has a joint venture with Japan's NEC and Matsushita Communication on video phones

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HONG KONG, China -- China's biggest telecom-equipment maker, Huawei Technologies Co., plans to break into the Japanese market.

Huawei will team up with Kanematsu Corp. in a sales alliance to sell routers, network switches and other equipment in Japan by the end of the year, according to the Nihon Keizai Shimbun.

The partnership would see it build a network of sales alliances in Japan, selling parts mainly under its own name, the Nikkei reported Wednesday.

Huawei, based in the Guangdong province city of Shenzhen since its founding in 1988, posted sales of 25.7 billion yuan ($3.1 billion) in 2001.

It makes equipment for office phone systems, routers, switches and both wireless and computer networks.

Sales falling this year

But its sales and profits have fallen the first six months of 2002, with the telecom downturn biting into its sales at home and abroad.

That pushed it in 2002 to start the process of laying off 15 percent of its 22,000 workers.

It hopes Japan will be a strong market for its goods, which are roughly 10 percent cheaper than those from its Japanese or American competitors.

The company has targeted sales of 50 billion yen ($400 million) in Japan within three years, the Nikkei stated.

The company also has a joint venture with computer and chip producer NEC and electronics maker Matsushita Communication Industrial Co. to make video-ready cell phones for so-called "third generation" phones service.

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