Jane Chen / Shanghai Daily news

Shenzhen-based Huawei Technologies Co, China's biggest telecommunications equipment maker, denied the market report that it is in talks to sell two units, most probably optical fiber and Internet access units, according to a spokesman with the company.
As the market report came yesterday, Huawei is likely to sell the two units to improve its profitability, as optical fiber and Internet access equipment are most severely impacted by the slumping profits of the telecom market.  The sale talks are reportedly not smooth so far, because some other telecom equipment makers are also eager to shed off these units.
Cited by today's Beijing News newspaper, the Huawei spokesman denied the report and said that optical fiber and Internet access equipment are two of Huawei's most profitable units and therefore there's no reason for it to sell them.
He noted Huawei is on a leading position in domestic optical sector, occupying 61 percent of China's total market.  In the Internet access equipment sector, Huawei holds 14 percent of the ADSL market, the world's top three market holders.  ADSL, or Asymmetric Digital Subscriber Line, is leading network access equipment for individual users.
In line with its huge ambitions for the overseas market, Huawei is taking active moves to consolidate its business and enhance its overseas partnership.
It set a distribution agreement on Monday with Britain's Marconi Corp PLC to help extend its reach in Europe.  Prior to this deal, it has also set up a joint venture agreement with Germany's Siemens AG to cooperate in so-called third generation, or 3G, mobile phone network development and sales.