The biggest boy in China's telecoms industry shows no respect for the newest kid on the block.

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Huawei Technologies Co. Ltd., the largest telecommunications equipment maker in China and the world, says newcomer Xiaomi, Inc. is only good for the domestic market and not for the world.

Xiaomi, one of the fastest-growing tech companies in the world, is the sixth-largest handset maker and the No. 3 handset in China, behind Samsung Electronics and Lenovo Group.

Huawei, however, is famous among the Chinese as the company can provide the best 4G in China and not as a handset maker.

This fact hasn't stopped Shao Yang, vice president for marketing at Huawei Consumer Business Group, from saying there's a need for a Chinese brand to challenge the dominance of Apple, Inc. and Samsung Electronics Co., Ltd. That Chinese company will be Huawei and not Xiaomi, said Shao, who is also in charge of Huawei's handset division.

Shao believes that Huawei is in a better position to be the Chinese brand that challenges Apple and Samsung. He said that four-year old Xiaomi can't match the reputation Huawei has built over the years and that this reputation will make the difference.

"They are quite dynamic. That's their advantage," he said of Xiaomi.

On the other hand, Huawei has a long track record with partners, which is an advantage Xiaomi can't match. For an older company such as Huawei, "trust is more important," Shao said.

Xiaomi is currently the hottest smartphone brand in China, and has a strong base among millions of Chinese. In contrast, Huawei has been successful in building its brand and making well-received handsets such as the Ascend P6, which Huawei claims is the world's slimmest smartphone.

In the first quarter of this year, Huawei shipped 13.5 million smartphones compared to Xiaomi's 10 million. Priced at $155.30, the average selling price for Huawei's phones is slightly less than Xiaomi's $159.60.

In 2013, Xiaomi sold 18.7 million smartphones almost entirely from its own website and brought in $5 billion in revenue. 

TagsHuawei belittles Xiaomi; says it will be the world's third top smartphone brand