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Huawei makes an investment in its international image
Outside of its home grounds, Huawei hasn't had the easiest of times making a dent in markets such as the US and Europe. But that's not to say the company hasn't been been trying. Just last year, the Chinese communications giant outlined a plan to regain its share of the European smartphone market, with the focus being to build premium handsets and spend more money on research and development. Now, based on that foundation, Huawei founder Ren Zhengfei intends to expand his company's presence in Europe by investing even more and boosting hires in the region.
Huawei complains about US spying allegations, implies McCarthy-style victimization
"We must remember always that accusation is not proof." So begins a report sponsored and published by Huawei, heavily quoting a 1954 US Senate report that condemned McCarthy and his anti-Communist hysteria. The document is a prelude to Huawei's forthcoming public testimony to the U.S. House of Representatives' Intelligence Committee, and its message is clear: the Chinese manufacturer is tired of how it's being treated in America, where numerous telecoms contracts have been blocked over "national security concerns." Huawei wants to be seen as an "opportunity" rather than a "threat," claiming it has scope to expand its 140,000 workforce and would love to create more jobs in America -- if only the US government would remove its "roadblock." Many other arguments are put forward, but some of the most interesting paragraphs deal with the background of Huawei's founder, Ren Zhengfei. The document claims that Zhengfei has been "tragically misunderstood" and that his alleged roles in the People's Liberation Army and Chinese Communist Party (CCP) are "unsubstantiated." The report doesn't deny those memberships ever existed, but instead downplays their significance -- for example by insisting that the CCP is now focused on promoting "private entrepreneurs" and "democratization." We admittedly stopped reading at that point, but if you'd like to continue then the full 78-page PDF, written by Dan Steinbock of the India, China and America Institute, is linked below.
Huawei 2011 financials: 20 million smartphones sold yet profit down 53 percent
Huawei's annual earnings report is out and it's a mixed bag, since while turnover increased by 11.7 percent to 203.9 RMB ($32.3 billion), profits plummeted 53 percent to 11.6 billion RMB ($1.8 billion). Revenue from overseas sales (138.4 billion RMB) equated for over half the company's total income and it boasted of having sold 150 million consumer devices, including 20 million smartphones in the year. The company didn't provide reasons for the drop in profit, emphasizing that it's increased R&D spending by 34.2 percent to 23.7 billion RMB ($3.75 billion) and that in any event, it's got around $30 billion of assets that can shoulder the brunt of a bad year. However, the company may not see a rosy 2012 either, after both America and Australia refused to give the company big infrastructure deals (Huawei's bread and butter) thanks to allegedly close relationships between the company and the Chinese government. It seems to be following a similar trajectory to rival ZTE, which also felt margins squeeze as it entered the global retail space and felt the heat when its political dealings were thrown in the spotlight.
Huawei blocked from first responder network contract, US cites 'national security concerns'
The inability to win US government approval isn't exactly an unfamiliar issue for Huawei, which by now must be conditioned not to expect a nod from major US telecom companies. But now, The Daily Beast reports that the U.S. Commerce Department has made it very clear that the Chinese company won't have a role in building the country's new dedicated first responder wireless network. A spokesman wasn't shy about the reason, either, explaining that Huawei "will not be taking part in the building of America's interoperable wireless emergency network for first responders due to U.S. government national security concerns." And what about those national security concerns? Well, Huawei president Ren Zhengfei's former role as a People's Liberation Army technologist may have something to do with it, considering it wouldn't be unreasonable to suspect that he still has some fairly close ties to Chinese government officials. We haven't heard a peep from the feds regarding Huawei's invitation for US officials to investigate the company earlier this year, but it's safe to assume that the investigation either didn't go very well, or more likely that it hasn't happened at all. We imagine that whole corporate espionage debacle probably didn't help the company, either.
