"If the Chinese market is not open, then the European market won't be open, other markets won't be open, then what's the result?" he said. "The result is everyone draws a line around their own territory."
Xu's comments echo concerns expressed by the White House and U.S. business lobbies, who have likened China's cybersecurity policies to protectionism and fear it will discriminate against players like Intel, Cisco Systems and Qualcomm.
The cybersecurity dispute has strained U.S.-China ties in recent months, although regulators in Beijing said last week they would temporarily suspend the implementation of rules governing bank-technology purchases.
Xu said Huawei's critical view of current policy was shared by others within China's government and technology industry, but when asked if he had expressed that view to the Chinese leadership, he declined to say.
"Our perspective is recognized by some technical experts in the country," he said. "Localization doesn't guarantee security; anyone who understands a little bit about technology understands this."
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China's Ministry of Industry and Information Technology and the Cyberspace Administration of China were not immediately available to comment outside of normal business hours.
Founded by a former Chinese military officer, Huawei itself was locked out of a major market in 2012, when it was labeled a national security risk in a U.S. Congressional report.
The company's lobbyists in Washington have slammed the report's findings as false and politically influenced while positioning Huawei as a champion of free-market competition.
Huawei's telecom carrier business in 2014 recorded a 20 percent increase in revenue to 288 billion yuan ($46.45 billion), placing it neck-and-neck with Swedish rival Ericsson.
But the company has forecast growth in its carrier division to flatten in several years with growth in its enterprise computing division to pick up the slack.
Xu declined to address the prospect of Huawei seeking to enter the U.S. telecoms market despite speculation that American carriers would like to see another vendor choice following Nokia and Alcatel-Lucent's proposed $16.6 billion merger.
"Our problem in America isn't about the carriers not wanting to work with us," Xu said, adding that countries should follow the example of Britain, which issued an independent audit this year finding Huawei's equipment did not pose a risk to its cybersecurity.