Huawei posts a 33pc surge in its earnings

CHINESE telecoms giant Huawei saw profits rise by a third in 2012, as it was buoyed by strong growth in Europe and Japan despite facing a US security investigation.

The company said it anticipates further growth in 2013, as it expands its smartphone business into more developed markets.

Huawei’s main presence outside of east Asia is in installing equipment such as radio masts for mobile networks. In this regard it ranks second only to Swedish firm Ericsson, which it is expected to overtake in the coming months.

The Chinese firm recently announced a £1.3bn investment in the UK that will create around 700 jobs. However, it has a tiny presence in the world’s richest economy, the US. Huawei, along with fellow Chinese firm ZTE, has faced a Senate investigation over allegations that it has installed surveillance technology in its infrastructure.

Chief financial officer Cathy Meng said the security concerns would not dampen Huawei’s growth and said it would keep an open mind about a potential listing.

Huawei saw annual revenues rise eight per cent to 220bn yuan (£22.3bn) and profit of 15.4bn yuan.