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Huawei: how the telecoms giant is seen around the world
By Julien GIRAULT
Paris (AFP) Jan 29, 2019

Huawei: what you need to know
Beijing (AFP) Jan 29, 2019 - Chinese tech giant Huawei overtook Apple to become the second-largest smartphone seller in the world in 2018.

It remains a privately held company, and little is known about its reclusive founder Ren Zhengfei, a former Chinese army engineer who rarely speaks to the media.

The company was dragged into the spotlight late last year when Ren's daughter and senior Huawei executive Meng Wanzhou was arrested in Canada at the request of the United States.

AFP takes a look at the company's history:

- Ex-soldier founder -

Ren founded Huawei in 1987 with a few thousand dollars.

In a rare interview with selected foreign media earlier this year, Ren said he only saw his children for one month a year while in the military.

After founding Huawei he worked 16-hour days, with barely any time for his family.

"Especially my youngest daughter, I was even more distant from her. So all I can say is, as a father, I feel I owe them," according to a transcript of the interview.

- Number 2 smartphone maker -

The Shenzhen-based company is one of the world's leading suppliers of telecommunications networks and has a presence in 170 countries.

It is the second-largest smartphone manufacturer in the world after Samsung Electronics, having overtaken Apple in 2018, and is ranked 72nd on the Fortune Global 500.

The company expects sales revenue of $108.5 billion in 2018, rotating chairman Guo Ping said in a New Year message to staff in December.

- Government links? -

Ren remains Huawei's president but there are concerns that his former role could mean close links with the military and government, which Huawei has consistently denied.

The arrest of Ren's daughter, Huawei chief financial officer Meng Wanzhou, has been characterised by Beijing as a means of keeping the company out of world markets.

- 5G behemoth -

Fifth-generation mobile communications are the next milestone in the digital revolution, bringing near-instantaneous connectivity and vast data capacity.

They will enable the widespread adoption of futuristic technologies such as artificial intelligence and automated cars and factories -- advances China is desperate to lead.

Huawei's status as a leading world supplier of the backbone equipment for telecoms systems gives China an inside track for leading this field.

- Daughter, executive, heir? -

Described as the "princess" of Huawei, Meng was a possible heir to the throne.

She had quietly risen through the ranks at the firm, sparking speculation that she would one day succeed her father, making her one of the world's top female corporate bosses.

Meng, who for unknown reasons took her mother's surname, has been keen to stress her own "humble" beginnings, with Chinese media reporting that one of her first tasks involved secretarial work.

- Blocked in countries -

Over the past year, various countries have raised security concerns about Huawei's technology, barring the firm from participating in the 5G network rollouts.

This includes the US, Australia and New Zealand.

Britain's largest mobile operator BT said it would remove Huawei equipment from existing 3G and 4G network while several European Union countries, Japan and Canada are still examining the risks of using Huawei equipment.

US charges against Chinese telecoms giant Huawei have cranked up tensions between the world's two biggest economies, but the company is already facing obstructions around the world over alleged cyber-security risks.

Huawei's status as a leading supplier of the backbone equipment for telecoms systems -- mostly in developing markets -- has given China an inside track for spearheading fifth-generation (5G) mobile technology.

5G communications are the next milestone in the digital revolution, bringing near-instantaneous connectivity, vast data capacity and futuristic technologies.

However, fears and that Chinese telecoms companies like Huawei could be proxies for Beijing's intrusive security apparatus, using the sophisticated infrastructure for espionage, a growing number of Western states turn their backs on the giant.

China has strongly defended its flagship tech group, with Foreign Minister Wang Yi denouncing on Friday an "unfair and immoral" campaign against Huawei.

Here is an overview of how Huawei is seen around the world:

- The United States -

Washington has slapped the strictest restrictions against Huawei, and according to American media, is strongly encouraging its allies to follow suit.

A report in October 2012 by the House Intelligence Committee found Huawei and China-based ZTE could be used to undermine the security of the US, and demanded they be excluded from public contracts.

The committee's report noted that Huawei, whose founder is a former Chinese army engineer, "did not fully cooperate with its investigation and was reluctant to explain its relations with the Chinese government".

Despite steering clear of infrastructure projects, a congressional letter issued in December 2017 said Huawei's equipment remained a "security threat" to the US.

Telecoms groups AT&T and Verizon have stopped offering Huawei smartphones in the US and in August 2018 President Donald Trump signed the military budget for 2019 which prohibited government and military officials from using devices built by Huawei and ZTE.

- Australia, New Zealand, Japan -

Australian authorities banned Huawei from submitting offers for the national broadband internet programme in 2012, fearing cyber-attacks.

In the summer of 2018, Australia excluded Huawei from rolling out 5G, saying "the involvement of suppliers likely to be subject to extrajudicial decisions by a foreign government" constituted a security risk.

New Zealand followed suit in November, officially citing technological incompatibility, and Japan came next in December with a ruling aimed at avoiding "information leaks", according to the Nikkei newspaper.

- Czech Republic -

In mid-December, the Czech cyber-security agency warned against the use of Huawei and ZTE's software and equipment, claiming it posed a threat to national security.

"Chinese laws require private companies headquartered in China to cooperate with intelligence services," it argued.

- Poland -

One of Huawei's officials in Poland was arrested in mid-January by the internal security service ABW on charges of spying for Beijing.

A senior government official then said that the country had begun investigating equipment provided by Huawei to assess the risks.

- Countries on alert -

In Britain, where the government has expressed "serious concern", the operator Vodafone has suspended its purchases of Huawei equipment for its infrastructure in Europe. BT announced in December it would remove Huawei materials from its existing 3G and 4G networks.

Germany remains cautious, with the country's cyber-crime body (BSI) chairman saying in mid-December: "For decisions as serious as a boycott, you need evidence."

In France, where two operators use Huawei equipment in their 4G network and conduct 5G tests with it, Foreign Minister Jean-Yves Le Drian last week raised "risks" regarding Huawei, and an amendment has been proposed in the senate to "ensure the safety of mobile networks" to prevent espionage or sabotage on 5G.

Norway, whose current networks are largely composed of Huawei equipment, is simply thinking of measures to "reduce (its) vulnerability".

In the midst of a full diplomatic spat with Beijing, the Canadian government told China in mid-January it would continue to mull whether or not to bar Huawei equipment from new networks while rejecting Chinese threats of "repercussions" in the event of a ban.

burs-je/lth/fa

AT&T CORPORATION

VERIZON COMMUNICATIONS

VODAFONE GROUP

ZTE


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