72 IN THE SHADOW OF THE DRAGON was becoming saturated. Huawei's international sales were only around $500 million, or roughly 18 percent of its total sales. Ren decided that it was time to make a major effort at going interna- tional. By 2004, just two years later, international sales accounted for 40 percent of the company's revenue. The only area that seemed off limits for major contracts was the United States. HUAWEI'S INTERNATIONAL SUCCESS Huawei had been cautious about trying to enter the U.S. market, even though it had created an institute in Silicon Valley in 1993 to explore chip production. But its success outside the United States was startling. By 2005, the company was providing telecom and Internet switching equipment to more than 30 of the world's top 50 telecommunications companies. British Telecom had selected it as one of its eight preferred suppliers for its 21st Century Network.