CNPC signs IT contracts with Huawei

The worry of overseas technology companies that the State-owned enterprises may favor local vendors is gradually becoming a reality after a number of US IT firms were subject to monopoly investigations or security criticisms in China.

China National Petroleum Corp, the largest SOE in the oil industry, said on Friday it has signed an agreement with Huawei Technologies Co Ltd to purchase information technology products and services. The value of the deal is unknown.

It was the first major IT deal signed by a top SOE after US vendors, including IBM Corp, Microsoft Corp and Qualcomm Inc, were accused of threatening national security.