Huawei Technologies Co. Ltd. (Chinese:
华为
(Huáwéi); English pronunciation: "WAH-way")[3]
is a Chinese
multinational networking and
telecommunications equipment and services company headquartered in
Shenzhen,
Guangdong.[4]
It is the largest telecommunications equipment maker in the world,
having overtaken
Ericsson in 2012.[5]
Huawei was founded in 1987 by ex-military officer
Ren Zhengfei and formed as a
private company owned by its employees. Its core missions are
building telecommunications networks; providing operational and
consulting services and equipment to enterprises inside and outside of
China; and manufacturing communications devices for the consumer market.[6]
Huawei has over 140,000 employees, around 46% of whom are engaged in
research and development (R&D).[7][8]
It has 20 R&D institutes in countries including China, the
United States,[9]
Germany,
Colombia,
Sweden,
Ireland,
India,
Russia,
and Turkey,[10][11]
and in 2011 invested around US$3.74 billion in R&D.[12][13]
In 2010, Huawei recorded profit of 23.8 billion CNY (3.7 billion
USD).[14]
Its products and services have been deployed in more than 140 countries
and it currently serves 45 of the world's 50 largest telecoms operators.[15]
History
Early years
Huawei was founded by
Ren Zhengfei in 1987, with an initial registered capital of
RMB21,000.[16]
Established in
Shenzhen, Huawei started off as a sales agent for a Hong Kong
company producing
private branch exchange (PBX) switches. By 1990, Huawei began its
own independent research and commercialization of PBX technologies
targeting hotels and small enterprises.[17]
After accumulating knowledge and resources on the PBX business, Huawei
achieved its first breakthrough into the mainstream telecommunications
market in 1992, when it launched its
C&C08 digital telephone switch, which had the largest switching
capacity in China at the time. By initially deploying in small cities
and rural areas, the company gradually gained market share and made its
way into the mainstream market.[18]
International
expansion
In 1997, Huawei won its first overseas contract,[19]
providing fixed-line network products to Hong Kong company
Hutchison Whampoa.[18]
Later that year, Huawei launched its wireless
GSM-based
products and eventually expanded to offer
CDMA and
UMTS. In 1999, the company opened a research and development (R&D)
center in
Bangalore, India to develop a wide range of telecom software.[17]
From 1998 to 2003, Huawei contracted with
IBM for
management consulting, and underwent significant transformation of its
management and product development structure. After 2000, Huawei
increased its speed of expansion into overseas markets, having achieved
international sales of more than US$100 million by 2000[19]
and establishing an R&D center in
Stockholm, Sweden. In 2001, Huawei established four R&D centers in
the United States, divested non-core subsidiary Avansys to
Emerson for US$750 million and joined the
International Telecommunications Union (ITU). By 2002, Huawei’s
international market sales had reached US$552 million.[17]
In 2004 Huawei continued its overseas expansion with a contract to
build a third-generation network for Telfort, the Dutch mobile operator.[17]
This contract, valued at more than $US25 million, was the first such
contract for the company in Europe.[20]
In 2005, Huawei’s international contract orders exceeded its domestic
sales for the first time. Huawei signed a Global Framework Agreement
with
Vodafone. This agreement marked the first time a telecommunications
equipment supplier from China had received Approved Supplier status from
Vodafone Global Supply Chain. The agreement established the terms and
conditions for the supply of Huawei's solutions to any one of the
Vodafone operating companies worldwide.[21]
Huawei also signed a contract with
British Telecom (BT) for the deployment of its multi-service access
network (MSAN)
and Transmission equipment for BT's
21st
Century Network (21CN), providing BT and the UK telecommunications
industry with some infrastructure necessary to support future growth as
these companies are multi vendor infrastructure.[22]
In May 2008, Huawei and
Optus
developed a mobile innovation centre in Sydney, Australia, providing
facilities for engineers to develop new wireless and mobile broadband
concepts into "ready for market" products.[23]
In 2008, the company embarked on its first large-scale commercial
deployment of
UMTS/
HSPA in North America providing
TELUS's new next generation wireless network and
Bell Canada with high-speed mobile access.[24]
Huawei delivered one of the world’s first
LTE/EPC commercial networks for
TeliaSonera in Oslo, Norway in 2009. The company launched the
world's first end-to-end 100G solution from routers to transmission
system that same year, to help meet the rapid growth of network traffic
and enhance router efficiency and reliability.[17]
In July 2010, Huawei was included in the
Global Fortune 500 2010 list published by the U.S. magazine
Fortune for the first time, on the strength of annual sales of
US$21.8 billion and net profit of US$2.67 billion.[25]
In late 2010 it was reported that Huawei is planning to invest around
US$500 million (Rs 2,200 crore) to set up a telecom equipment
manufacturing facility in
Tamil Nadu, India and $US100 million to expand its R&D center in
Bangalore.[26][27]
United Kingdom
In October 2012, it was announced that Huawei would move its UK
headquarters to
Green Park,
Reading, Berkshire.[28]
United States
In the United States, Huawei became the main sponsor of the
Jonas Brothers' 2013 summer tour. The sponsorship placed the
company's logo on promotional merchandise.[29]
Investment and partnerships
Huawei has focused on expanding its mobile technology and networking
solutions through a number of partnerships. In March 2003, Huawei and
3Com Corporation formed a joint venture company, 3Com-Huawei (H3C),
which focused on the
R&D, production and sales of data networking products. The company
later divested a 49% stake in H3C for US$880 million in 2006. In 2005,
Huawei began a joint venture with
Siemens,
called TD Tech, for developing
3G/
TD-SCDMA mobile communication technology products. The US$100
million investment gave the company a 49% stake in the venture, while
Siemens held a 51% stake.[17]
In 2007, after Nokia and Siemens co-founded
Nokia Siemens Networks, Siemens transferred all shares it held in TD
Tech to Nokia Siemens Networks. At present, Nokia Siemens Networks and
Huawei hold 51% and 49% shares of TD Tech respectively.[30]
In 2006, Huawei established a Shanghai-based joint R&D center with
Motorola to develop
UMTS technologies.[17]
Later that year, Huawei also established a joint venture with Telecom
Venezuela, called Industria Electronica Orinoquia, for research and
development and sale of telecommunications terminals. Telecom Venezuela
holds a 65% stake while Huawei holds the remaining 35% stake.[31]
Huawei and American security firm
Symantec announced in May 2007 the formation of a joint-venture
company to develop security and storage solutions to market to
telecommunications carriers. Huawei initially owned 51% of the new
company, named
Huawei Symantec Inc. while Symantec owned the rest. The
joint-venture was based in
Chengdu.[32]
In March, 2012, Symantec announced the sale its portion of the joint
venture to Huawei.[33]
Grameenphone Ltd. and Huawei won the Green Mobile Award at the
GSMA Mobile Awards 2009.[34]
In March 2009, the
Wimax Forum announced four new members to its Board of Directors
including Thomas Lee, the Vice Director of the Industry Standards
Department at Huawei.[35]
In 2008, Huawei launched a joint venture with UK-based marine
engineering company, Global Marine Systems, to deliver undersea network
equipment and related services.[36]
Recent performance
In April 2011, Huawei announced an earnings increase of 30% in 2010,
driven by significant growth in overseas markets, with net profit rising
to
RMB23.76 billion (US$3.64 billion; £2.23 billion) from RMB18.27
billion in 2009.[37]
In 2010 sales outside China continued to be the main driver of Huawei’s
business. Overseas revenue rose 34% to RMB120.41 billion in 2010 from
RMB90.02 billion in 2009, fueled by regions including North America and
Russia. Revenues from China rose 9.7% to RMB64.77 billion, as the
country's big
telecom operators reduced their investment last year.[38]
Huawei's revenues in 2010 accounted for 15.7% of the $78.56 billion
global carrier-network-infrastructure market, putting the company second
behind the 19.6% share of Telefon AB L.M.
Ericsson, according to market-research firm
Gartner.[38]
Huawei is targeting a revenue of $150 million through its enterprise
business solutions in India in next 12 months. It denied using Chinese
subsidies to gain global market share after being recently accused by US
lawmakers and EU officials of unfair competition.[39][40]
Corporate affairs
Huawei classifies itself as a "collective"
and does not refer to itself as a private company.
Richard McGregor, author of
The Party: The Secret World of China's Communist Rulers, said
that this is "a definitional distinction that has been essential to the
company's receipt of state support at crucial points in its
development."[41]
McGregor argued that "Huawei's status as a genuine collective is
doubtful."[41]
Leadership
Ren Zhengfei is the president of Huawei and has held the title since
1987.[42]
Huawei disclosed its list of board of directors for the first time in
2010. Ms. Sun Yafang is chairwoman of the board. As of 2011, the members
of the Board of Directors[43]
are Ms. Sun Yafang,[44][45]
Mr. Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun,[46]
Mr. Ren Zhengfei,[47]
Mr. Xu Wenwei, Mr. Li Jie, Mr. Ding Yun, Ms. Meng Wanzhou, Ms. Chen
Lifang,[48]
Mr. Wan Biao, Mr. Zhang Pingan, and Mr. Yu Chengdong.[43]
The members of the Supervisory Board are Mr. Liang Hua, Mr. Peng
Zhiping, Mr. Ren Shulu, Mr. Tian Feng, and Mr. Deng Biao.[49]
Richard Yu Chengdong is the Chairman of Huawei Device, its mobile phone
division.[50]
One 1 July 2013, Huawei Device announced former head of Nokia Colin
Giles joined the company as Executive Vice President of Consumer
Business.[50]
Ownership
As of 2011 Huawei has not published a corporate structure breakdown.
Richard McGregor, author of The Party: The Secret World of China's
Communist Rulers, said that "[m]ost shares are believed to be owned
by"
Ren Zhengfei and Ren's managers.[41]
As Huawei CEO mentioned that they don't have any relationship with China
Government.
Partners and
customers
As of the start of 2010, approximately 80% of the world's top 50
telecoms companies worked with Huawei.[51]
Prominent partners include:
In May 2011 Huawei won a contract with Everything Everywhere, the
UK’s biggest communication company, to enhance its 2G network. The
four-year deal represents Huawei's first mobile network deal in the UK.[58]
Products and
services
Huawei is organized around three core business segments:
- Telecom Carrier Networks, building telecommunications networks
and services
- Enterprise Business, providing equipment, software and services
to enterprise customers
- Devices, manufacturing electronic communications devices[6]
Huawei announced its Enterprise business in January, 2011 to provide
network infrastructure,
fixed
and
wireless communication,
data center, and
cloud computing solutions for global telecommunications customers.[59]
Huawei has stated that it aims to increase enterprise sales to US$4
billion in 2011 and $15 billion within three to five years.[60][61]
Telecom networks
Huawei offers a variety of network technologies and solutions to help
telecommunications operators expand the capacity of their mobile
broadband networks. Huawei’s core network solutions offer mobile and
fixed
softswitches, plus next-generation
home location register and
Internet Protocol Multimedia Subsystems (IMS). Huawei assists
content service providers looking to migrate from copper to fiber with
solutions that support
xDSL,
passive optical network (PON) and next-generation PON (NG PON) on a
single platform. The company also offers mobile infrastructure,
broadband access and service provider routers and switches (SPRS).
Huawei’s software products include
service delivery platforms (SDPs), BSSs,
Rich Communication Suite and digital home and mobile office
solutions.[62]
In 2010, revenues for Telecom Networks were US$18.79 billion.[63]
Global services
Huawei Global Services provides telecommunications operators with
equipment to build and operate networks as well as consulting and
engineering services to improve operational efficiencies.[58]
These include
network integration services such as those for mobile and fixed
networks;
assurance services such as network safety; and learning services,
such as competency consulting.[62]
In 2010, Huawei won 47 managed services contracts to help improve
network performance and efficiency for customers, as well as reducing
the costs of network operations and maintenance.[64]
In 2010 Huawei's global services revenues grew 28.6% to US$4.82 billion.[65]
Ascend
smartphones and devices
Huawei's Devices division provides
white-label products to content-service providers, including
USB modems,
wireless modems,
embedded modules,
fixed wireless terminals,
wireless gateways,
set-top boxes,
mobile handsets and video products.[66]
Huawei also produces and sells a variety of devices under its own name,
such as the IDEOS
smartphones and
tablet PCs. Recent products include
U8800,
U8860,
E220,
Ascend,
U7519, Huawei Mercury M886, and
U8150. In 2010, Huawei Devices shipped 120 million devices around
the world.[6]
30 million cell phones, of which 3.3 million units were smartphones,
were shipped to markets such as Japan, the United States and Europe.[67]
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Competitive
position
Huawei Technologies Co Ltd, is the world's largest telecom equipment
maker[5][68]
and China’s largest telephone-network equipment maker.[69]
As of 2008, Huawei ranked first in terms of global market share in the
mobile softswitches market,[70]
tied with Sony Ericsson for lead market share in mobile broadband cards
by revenue,[71]
ranked second in the optical hardware market,[72]
stayed first in the IP DSLAM market,[73]
and ranked third in mobile network equipment.[74]
In 2009, Huawei was ranked No. 2 in global market share for radio access
equipment.[75]
In addition, Huawei was the first vendor to launch end-to-end (E2E) 100G
solutions, enabling operators to establish enhanced ultra-broadband
networks, improving their service and simplifying their network
architecture.[76][77]
According to the
World Intellectual Property Organization (WIPO) on 27 January 2009,
Huawei was ranked as the largest applicant under WIPO's
Patent Cooperation Treaty (PCT), with 1,737 applications published
in 2008. Overall, the total number of international patent filings under
WIPO's PCT for 2008 represents the highest number of applications
received under the PCT in a single year and China improved its ranking
by one place, to become the sixth largest user of the PCT, with 6,089
filings.[78]
As of February 2011, Huawei has applied for 49,040 patents globally and
has been granted 17,765 to date.[79]
Sales
Huawei's global contract sales for 2006 reached US$11 billion (a 34%
increase from 2005), 65% of which came from overseas markets.[80][81]
By the end of 2008, global contract sales of Huawei Technologies,
China's largest telecoms gear maker, jumped 46 percent to US$23.3
billion.[82]
Huawei experienced sales exceeding US$30 billion in 2009,[82][83]
and global sales increased by 24 percent to 185.2 billion yuan in 2010.[84]
Recognition
Huawei Technologies was one of six telecom industry companies
included in the World's Most Respected 200 Companies list compiled by
Forbes
magazine in May 2007.[85]
In December 2008, BusinessWeek magazine included Huawei in their
inaugural list of "The World's Most Influential Companies".[86]
In 2010 Fast Company ranked Huawei the fifth most innovative
company in the world.[87]
The same year, Huawei received three honors at the Global Telecom
Business Innovation Awards including "Green base station innovation",
"Wholesale network innovation" and "Consumer voting innovation" awards
with Vodafone, BT and TalkTalk, respectively.[88]
In 2010 Frost & Sullivan recognized Huawei as the 2010 SDM Equipment
Vendor of the Year[89]
and in the contact center application market with the 2010 Asia Pacific
Growth Strategy Leadership Award.[90]
On 29 July 2010, Huawei was recognized by British Telecom with Best in
Class 21CN Solution Maturity, Value, Service and Innovation award, for
its innovation and contribution in 21CN and Next Generation Access
project.[91]
Also in 2010 The Economist recognized Huawei with its Corporate
Use of Innovation Award.[92]
In May 2011 Huawei won two awards at the LTE World Summit 2011 for
“Significant Progress for a Commercial Launch of LTE by a Vendor” and
“Best LTE Network Elements.” As of May 2011, Huawei has deployed over
100
SingleRAN commercial networks, which are capable of evolving into
LTE, and of those that have deployed SingleRAN networks, more than 40
operators have announced the launch or the imminent launch of distinct
LTE services.[93]
Huawei has been described as "perhaps China's most globally
successful company".[41]
Huawei sponsors
Bundesliga club
Borussia Dortmund.[94]
Also on 15th September Huawei were announced as the new shirt
sponsors of A-League club Wellington Phoenix FC.
Corporate social responsibility
As part of its international support for technology and
telecommunications education and training, Huawei has contributed
funding and equipment to a number of universities and training centers
in countries such as Kenya,[95]
India,[96]
Indonesia,[97][98]
Bangladesh,[99]
and Nigeria.[96]
In the U.S., since 2008, Huawei has sponsored
MIT’s Communications Futures Program, a research collaboration that
studies the future of the telecommunications industry.[100][101][102]
In 2010, Huawei joined the
Broadband Commission for Digital Development, formed by the
ITU and
UNESCO to support broadband deployment to developing nations.[103][104][105]
In the same year, Huawei joined the Green Touch consortium, an industry
group that aims to make communications networks 1000 times more energy
efficient than they are today.[106]
In June 2011, Huawei signed a five-year agreement to contribute
donated services, equipment and technical expertise worth over US$1.4
million to
Carleton University, in
Ottawa,
Canada, to establish a research lab dedicated to
cloud computing technology and services.[107]
The same month, Huawei published its 2010
Corporate Social Responsibility (CSR) Report.[108][109]
Criticisms and controversies
Intellectual property rights
In February 2003
Cisco Systems sued Huawei Technologies for allegedly infringing on
its patents and illegally copying source code used in its routers and
switches.[110]
According to statement by Cisco, by July 2004 Huawei removed the
contested code, manuals and command-line interfaces and the case was
subsequently dropped.[111]
Both sides claimed success – with Cisco asserting that "completion of
lawsuit marks a victory for the protection of intellectual property
rights", and Huawei's partner 3Com (which was not a part of lawsuit)
noting that court order prevented Cisco from bringing another case
against Huawei asserting the same or substantially similar claims.[112]
Although Cisco employees allegedly witnessed counterfeited technology as
late as September 2005,[113]
in a retrospective Cisco's Corporate Counsel noted that "Cisco was
portrayed by the Chinese media as a bullying multi-national corporation"
and "the damage to Cisco's reputation in China outweighed any benefit
achieved through the lawsuit";[114]
however the same article that quoted the remarks of the Corporate
Counsel also notes the remarks of Jay Hoenig of Hill and Associates, a
security and risk management consultancy, who encouraged foreign
companies to take greater advantage of civil litigation and said that it
was hard to make the argument that China's civil system was ineffectual
if litigants did not pursue all of the legal remedies available to them.[114]
Huawei's chief representative in the US subsequently claimed that
Huawei had been vindicated in the case, breaking a confidentiality
clause of Huawei's settlement with Cisco. In response Cisco revealed
parts of the independent expert's report produced for the case which
proved that Huawei had stolen Cisco code and directly copied it into
their products.[115]
In June 2004, a Huawei employee was caught after hours diagramming
and photographing circuit boards from a competitor booth at the
SuperComm tradeshow.[116]
The employee denied the accusation, but was later dismissed.[117][118]
In July 2010, Motorola filed an amended complaint that named Huawei
as a co-defendant in its case against Lemko for alleged theft of trade
secrets.[119][120]
The case against Huawei was subsequently dropped in April 2011.[121][122][123]
In January 2011, Huawei filed a lawsuit against Motorola to prevent its
intellectual property from being illegally transferred to Nokia Siemens
Networks ("NSN") as part of NSN’s US$1.2 billion acquisition of
Motorola's wireless network business.[124][125][126][127]
In April 2011, Motorola and Huawei entered into an agreement to settle
all pending litigation,[122][128][129]
with Motorola paying an undisclosed sum to Huawei for the intellectual
property that would be part of the sale to NSN.[130][131][132]
In a further move to protect its intellectual property, Huawei filed
lawsuits in Germany, France and Hungary in April 2011 against
ZTE for
patent and trademark infringement.[133][134][135]
The following day, ZTE countersued Huawei for patent infringement in
China.[136][137]
Security concerns
In the US, Huawei has been challenged due to concerns of United
States security officials that Huawei-made telecommunications equipment
is designed to allow unauthorized access by the Chinese government and
the Chinese
People's Liberation Army,[138][139][140][141]
given that Ren Zhengfei, the founder of the company, served as an
engineer in the army in the early 1980s.[142]
In the United Kingdom, the
Conservative Party raised concerns about security over Huawei’s bid
for Marconi in 2005,[140]
and the company's equipment was mentioned as an alleged potential threat
in a 2009 government briefing by Alex Allan, chairman of the
Joint Intelligence Committee.[143]
In December 2010, Huawei opened a Cyber Security Evaluation Centre to
test its hardware and software to ensure they can withstand growing
cyber security threats.[144][145]
In the U.S., some members of Congress raised questions about the
company's proposed merger with communications company
3Com in
2008,[146]
and its bid for a Sprint contract in 2010.[142]
In addition, Huawei withdrew its purchase of 3Leaf systems in 2010,
following a review by the
U.S. Committee on Foreign Investment (CFIUS).[139]
In a 2011 open letter, Huawei stated that the security concerns are
“unfounded and unproven” and called on the U.S. government to
investigate any aspect of its business.[147][148]
The US-based non-profit organization
Asia Society carried out a review of Chinese companies trying to
invest in the U.S., including Huawei. The organization found that only a
few investment deals were blocked following unfavorable findings by the
CFIUS or had been given a recommendation not to apply, however all large
transactions had been politicized by groups including the U.S. media,
members of Congress and the security community.[149][dead
link] However, another article unrelated to the
report published by the
Asia Society reported that, "fear that the P.R.C. government could
strongarm private or unaffiliated Chinese groups into giving up
cyber-secrets is reflected in the U.S. government's treatment of Chinese
telecom company Huawei."[150]
In October 2009, the Indian
Department of Telecommunications reportedly requested national
telecom operators to "self-regulate" the use of all equipment from
European, U.S. and Chinese telecoms manufacturers following security
concerns.[151]
Earlier, in 2005, Huawei was blocked from supplying equipment to India's
Bharat Sanchar Nigam Limited (BSNL)
cellular phone service provider.[152]
In 2010, the Indian
Central Bureau of Investigation (CBI) insisted on cancelling the
rest of the Huawei contract with BSNL and pressed charges against
several top BSNL officers regarding their "doubtful integrity and
dubious links with Chinese firms".[153][154]
In June 2010, an interim solution was introduced that would allow the
import of Chinese-made telecoms equipment to India if pre-certified by
international security agencies such as Canada’s Electronic Warfare
Associates, US-based Infoguard, and Israel’s ALTAL Security Consulting.[155]
In October 2011, the
Wall Street Journal reported that Huawei had become Iran's
leading provider of telecommunications equipment, including monitoring
technologies that could be used for surveillance.[156]
Huawei responded with a statement claiming the story misrepresented the
company's involvement: "We have never been involved and do not provide
any services relating to monitoring or filtering technologies and
equipment anywhere in the world".[157]
In December 2011,
Bloomberg reported that the U.S. is invoking
Cold
War-era national security powers to force telecommunication
companies including AT&T Inc. and Verizon Communications Inc. to divulge
confidential information about their networks in a hunt for Chinese
cyber-spying, with Richard Falkenrath, a senior fellow in the Council on
Foreign Relations Cyberconflict and Cybersecurity Initiative, saying,
“This is beyond vague suspicions...Congress is now looking at this as
well, and they’re doing so based on very specific material provided them
in a classified setting by the National Security Agency." The action
represents a concern that China and other countries may be using their
growing export sectors to develop built-in spying capabilities in U.S.
networks. The U.S. House Permanent Select Committee on Intelligence said
it would investigate potential security threats posed by some foreign
companies, and mentioned Huawei specifically. A spokesman for Huawei
said that the company conducts its businesses according to normal
business practices and actually welcomed the investigation.[158]
In 2001, it was alleged that Huawei Technologies India had developed
telecommunications equipment for the Taliban in Afghanistan, and
newspapers reported that the Indian government had launched a probe into
the firm's operations.[159][160]
Huawei responded, stating that the company did not have "any link with
the Taliban", as its only customers are telecommunications carriers[161]
and its facilities "always operate according to U.N. rules and the local
laws of each country".[162]
On 15 December 2001, the Indian authorities announced that they had not
found any evidence that Huawei India had any connection to the Taliban,[163]
although the U.S. remains suspicious.[164]
In March 2012, Australia media sources reported that the
Australian government had excluded Huawei from tendering for
contracts with
NBN Co,
a government-owned corporation that is managing the construction of the
National Broadband Network,[165]
following advice from the
Australian Security Intelligence Organisation regarding security
concerns.[166]
The
Attorney-General's Department stated in response to these reports
that the National Broadband Network is "a strategic and significant
government investment, [and] we have a responsibility to do our utmost
to protect its integrity and that of the information carried on it."[167]
In July 2012, Felix Lindner and Gregor Kopf gave a conference at
Defcon to announce that they uncovered several critical vulnerabilities
in Huawei routers (models AR18 and AR29)[168]
which could be used to get remote access to the device. The researchers
said that Huawei "doesn't have a security contact for reporting
vulnerabilities, doesn't put out security advisories and doesn't say
what bugs have been fixed in its firmware updates", and as a result, the
vulnerabilities have not been publicly disclosed. Huawei replied that
they were investigating the claims.[169]
On 8 October 2012, a US
House Intelligence Committee panel issued a report describing Huawei
as a "national security threat" due to its alleged ties to various
Chinese governmental agencies. The panel's report suggested that Huawei
should "be barred from doing business with the US government", and
additionally alleged that the telecom manufacturer had committed
"potential violations" related to
immigration,
bribery,
corruption, and
copyright infringement.[170]
However, a subsequent
White House-ordered review found no concrete evidence to support the
House report's espionage allegations.[67]
On 9 October 2012, a spokesman for Canadian Prime Minister
Stephen Harper indicated that the Canadian government invoked a
national security exception to exclude Huawei from its plans to build a
secure government communications network.[171]
On 25 October 2012, a Reuters report[67]
wrote that according to documents and interviews, an Iranian-based
seller of Huawei (Soda Gostar Persian Vista) last year tried to sell
embargoed American antenna equipment (made by American company Andrew
LLC to an Iranian firm
MTN Irancell). Specifically, the Andrew antennas were part of a
large order for Huawei telecommunications gear that MTN Irancell had
placed through Soda Gostar, but the MTN Irancell says it canceled the
deal with Huawei when it learned the items were subject to sanctions and
before any equipment was delivered.[67]
Vic Guyang, a Huawei spokesman, acknowledged that MTN Irancell had
canceled the order; Rick Aspan, a spokesman for CommScope, said the
company was not aware of the aborted transaction.[67]
On 19 July 2013,
Michael Hayden, former head of US
NSA and currently a director of Motorola Solutions, says he is aware
of hard evidence of spying activity by Huawei. Huawei and Motorola
Solutions had previously been engaged in intellectual property disputes
for a number of years. Huawei's global cybersecurity Officer, John
Suffolk, described the comments made by Hayden as "tired,
unsubstantiated, defamatory remarks" and challenged him and other
critics to present any evidence publicly.[172][173]
Treatment of workforce and customers
A U.S. Army Strategic Studies Institute report on
Argentina published in September 2007 describes Huawei as "known to
bribe and trap clients." The report details unfair business practices,
such as customers framed by "full-paid trips" to China and monetary
"presents" offered and later used by Huawei as "a form of extortion."[174]
According to a
WikiLeaks cable, in 2006, Michael Joseph, then-CEO of
Safaricom Ltd, allegedly struggled to cancel a contract with Huawei
due to poor after-sales experience, after which the Kenyan government
pressured him to reinstate the contract.[175]
When questioned regarding this incident, Joseph replied, “It [the cable]
is not a reflection of the truth as evidenced by Safaricom being a major
purchaser of Huawei products including all 3G, switching and the recent
OCS billing system upgraded over the weekend.”[176]
In May 2010, it was reported in the Times of India, that
security agencies in
India
became suspicious of Chinese Huawei employees after learning that Indian
employees allegedly did not have access to part of Huawei's
Bangalore research and development (R&D) office building.[177]
Huawei responded that the company employs over 2,000 Indian engineers
and just 30 Chinese engineers in the R&D center in Bangalore, and "both
Indian and Chinese staff have equal access rights to all our information
assets and facilities".[178]
According to the Times of India, the intelligence agencies also
noted that Chinese employees of Huawei had extended their stay in
Bangalore for many months.[177]
Huawei stated that many of these employees were on one-and-a-half-year
international assignments to serve as a technical bridge between
in-market teams and China, and that "all the Chinese employees had valid
visas and did not overstay".[179]
In October 2007, 7,000 Huawei employees resigned and were then
rehired on short-term contracts, thereby apparently avoiding the
unlimited contract provisions of the Labour Contract Law of the People's
Republic of China. The company denied it was exploiting loopholes in the
law, while the move was condemned by local government and trade unions.[180][181]
Huawei's treatment of its workforce in
Guangdong Province, Southern China also triggered a media outcry
after a 25-year-old software engineer, Hu Xinyu, died in May 2006 from
bacterial
encephalitis, as a result of what is believed[by
whom?] to have been work-related fatigue.[182][183]
In its 2010 Corporate Social Responsibility report, Huawei
highlighted the importance of employee health and safety. In 2010,
Huawei provided annual health checks to all full-time employees and
performed 3,200 checks to employees exposed to occupational health
risks.[184]
Also, in 2011 Huawei initiated a Scholarship program, "Huawei Maitree
Scholarship", for Indian students studying in China. The scholarship has
attracted almost 200 above applications this 2013.
[185]
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{cite web |url=http://www.hindustantimes.com/HTEducation/Chunk-HT-UI-HTEducationSectionPage-HorizonsAlertsScholarships/Huawei-Maitree-Scholarship-Programme-2012/SP-Article1-845422.aspx}
Further reading
External links