Huawei, China’s largest telecoms equipment maker, reported a 46 percent increase in contract sales last year and is predicting growth of 28.8 percent in 2009, according to an internal memo seen by China Daily. According to the e-mailed memo, written by Huawei chairwoman Sun Yafang, contract sales amounted to US$23.3 billion in 2008, with 75 percent of revenue coming from its overseas operations. She added that Huawei’s contract sales are expected to increase 28.8 percent to US$30 billion this year. Huawei normally reports only contract sales, while actual sales average at around 72-75 percent of that figure.

The vendor’s prediction of strong growth comes at a time when many of its international competitors such as Ericsson and Nokia Siemens Networks are bracing themselves for a tightening on spending on telecoms equipment in 2009. A recent report by Fitch Ratings found that the 2009 outlook for the global telecom equipment sector was negative amid margin pressure in both handset and infrastructure markets, but highlighted emerging markets such as India, Latin America and China as key sources of revenue.