SHENZHEN

China's largest telecommunications firm says it will continue to sell its phones in the United States, even as national security concerns keep the company's equipment out of American telecom networks.

Huawei made its name selling telecom equipment, and specializes in building the routers and switches needed for national communication systems. But it's been unable to crack the U.S. hardware market, with several attempts falling foul of regulators.

Huawei's ultimate goal was to sell its equipment to American providers like AT&T and Verizon -- a lucrative business with the potential to boost profits.

Anyone wanting to get a better idea of the scale of the changes taking place in the world of consumer electronics should take a look at Foxconn’s giant factory complex in Shenzhen, in southern China. Known as Foxconn City, it covers an entire square mile and is crammed with manufacturing operations and company-managed housing, medical facilities and educational centres. About 400,000 people work there, roughly as many as live in Oakland, California.

Like several other Taiwanese firms that operate factories at home and in China, Foxconn churns out electronic devices on behalf of a number of Western companies.

In a crowded multi-storeyed marketplace in downtown Shenzhen, a store owner haggles with a cigarette-smoking customer over the price for a bulk sale.

They aren't bargaining over fake watches or counterfeit leather bags, but genuine Apple iPads and iPhones--freshly smuggled from Hong Kong, a free port with zero duties for many electronics imports.

"This is real stuff that just arrived. We just got these off someone's waist strap," said the storeowner, whose surname is Xu, while the customer ran his fingers through a stash of cash upon closing the deal to buy a dozen iPhone 4s.

Nokia set the date for its annual Nokia World conference on October 26-27 in London, fueling speculation that this will be the venue for the company to announce its first Windows Phones. Right now there aren't many details on the Nokia World site. Each day of the show has a keynote, and the agenda is bland. But at the Communicasia conference today where Nokia announced its MeeGo-based N9 phone, Nokia CEO Stephen Elop confirmed what EVP Jo Harlow told us in May that Nokia would be releasing its first Windows Phone 7 devices this year.

China's Huawei Technologies is making an aggressive push into the consumer electronics space, marketing its new smartphones and tablet PCs in glitzy Beijing malls and even a Milan fashion show as it seeks to emerge from decades of obscurity. Huawei is betting on Google Inc's Android operating system for its smartphones, taking aim at grabbing market share from Apple's iPhone and Samsung Electronics' Galaxy in a move that is pushing the private company to open its

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