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Chinese telecommunications equipment giant Huawei’s net profit surged more than 32 percent to 27.9 billion yuan ($4.5 billion) in 2014, it said Tuesday, helped by demand from emerging markets.

The United States has long seen Huawei as a security threat due to perceived close links to the Chinese government, which it denies, while both the US and Australia have barred it from involvement in broadband projects over espionage fears. Huawei denies such allegations.

In the annual report, Huawei – which is not listed on any stock exchange – said revenue increased by 21 percent to 288 billion yuan.

“Profit increase stems from streamlined management and improvements in overall efficiency,” Huawei deputy chairman Ken Hu said in a statement.

The Shenzhen-based firm was founded in 1987 by former People’s Liberation Army engineer Ren Zhengfei, and is now among the world’s top makers of telecommunications equipment.

It operates in 170 countries and the company says one third of the world’s population communicate using its products in some way.

It is the world’s second largest network gear supplier behind Sweden’s Ericsson, and has made a large push into consumer products such smartphones in recent years.

Consumer products were the company’s fastest-growing division last year as Huawei saw increased demand in emerging markets, while investment in research and development surged nearly 30 percent year-on-year to 40.8 billion yuan, it said.

Overseas markets contributed more than 62 percent of revenue with the Europe, Middle East and Africa region the largest contributor outside China. As the single largest market, China provided about 38 percent of turnover.