Huawei is planning to hire about 5,500 people for its European operations in the next four to five years, bringing its overall staff in the region to 13,000.

The Chinese phone-network equipment maker expects that rapid telecommunications services and cheaper devices would boost demand in Europe.

Huawei chief executive officer and deputy chairman Ken Hu was quoted by Bloomberg as saying in the past 10 years the company gained a deep understanding of European market.

"We now have local partners, research and development facilities," Hu said.

"We will continue to increase our investments in this market. If we can be successful in Europe and have a virtuous circle, we can invest more."

Huawei’s plan comes in the midst of European telecom equipment makers cutting their workforces.

European firms including Alcatel-Lucent plans to cut 5,500 jobs, Ericsson to lay down 1,550 and Nokia Siemens Networks intends to reduce its workforce by 17,000.

"Huawei and Alcatel can coexist in France or elsewhere, just like they do in China," Hu added.

Huawei is expecting a 10% compound growth in sales annually over the next five years mainly over rise in cloud computing and smartphone sales.

Earlier, Huawei ‘ major Iranian partner allegedly offered selling about €1.3m worth restricted HP computer equipment to Mobile Telecommunication of Iran (MCI).