TAIPEI, Taiwan China's largest telecom equipment vendor, Huawei Technologies Co., Ltd., secured a credit line of $10 billion for overseas expansion and the financing of customer purchases during the next five years.
The China Development Bank, one of the country's largest state-owned policy banks, completed the deal with Huawei on Thursday. The bank has made similar deals over the past decade to support more than 4000 projects, amounting to financing of about $250 billion.
The deal comes on the heels of a decision earlier this week by China's State Administration of Taxation to increase tax rebates from 13 percent to 17 percent on 14 areas of electronics, including telecom equipment. The move is intended to make China-based companies more competitive overseas.
In the past few years, Huawei has been aggressively trying to establish its bona fides in the international market. The company is emerging as a potential rival to Cisco Systems as it begins to nip into developed markets, where it has made modest gains in Germany, France, the U.K, Portugal and Canada.
In general, though, Huawei must look for much of its work in emerging countries that aren't a major focus of industry leaders. Nevertheless, Huawei is doing well in this niche and has seen its international revenue double this year, as it has in previous years, to total $2 billion. Huawei is expected to take in $4.8 billion in 2004. That contrasts with $22 billion for Cisco during its fiscal 2004.