Huawei

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Huawei Technologies Co. Ltd. Huawei.svg
Huawei 1.JPG
Huawei headquarters in Shenzhen, China
Native name
????????
Type
Private
Industry
Telecommunications equipment
Networking equipment
Founded
1987
Founder
Ren Zhengfei
Headquarters
Shenzhen, China
Area served
Worldwide
Products
Mobile and fixed broadband networks, consultancy and managed ser
vices, multimedia technology, smartphones, tablet computers, dongles
Revenue
Increase CN239.02 billion (2013)[1]
Increase US$39.46 billion (2013)
Operating income
Increase CN29.12 billion (2013)[1]
Increase US$4.80 billion (2013)
Profit Increase CN21.00 billion (2013)[1]
Increase US$3.46 billion (2013)
Total assets
Increase CN231.53 billion (2013)[1]
Increase US$38.22 billion (2013)
Total equity
Increase CN86.26 billion (2013)[1]
Increase US$14.24 billion (2013)
Owner Employee-owned corporation[2]
Number of employees
150,000 (2013)[3]
Subsidiaries
HiSilicon
Website
www.huawei.com, www.huaweidevice.com, www.gethuawei.com
Huawei Technologies Co. Ltd.
Simplified Chinese
????????
Traditional Chinese
????????
Literal meaning
Huawei Technology Limited Company
[show]Transcriptions
Alternative Chinese name
Simplified Chinese
??
Traditional Chinese
??
Literal meaning
Splendid Achievement
or Chinese-Doing
[show]Transcriptions
Huawei Technologies Co. Ltd. /'w???we?/ is a Chinese multinational networking an
d telecommunications equipment and services company headquartered in Shenzhen, G
uangdong.[4] It is the largest telecommunications equipment maker in the world,
having overtaken Ericsson in 2012.[5]
Huawei was founded in 1987 by Ren Zhengfei, a former engineer in the People's Li
beration Army. At the time of its establishment Huawei was focused on manufactur
ing phone switches, but has since expanded its business to include building tele
communications networks; providing operational and consulting services and equip
ment to enterprises inside and outside of China; and manufacturing communication
s devices for the consumer market.[6][7] Huawei has over 140,000 employees, arou
nd 46% of whom are engaged in research and development (R&D).[8][9] It has 21 R&
D institutes in countries including China, the United States,[10] Canada,[11] UK

,[12] Pakistan, France, Germany, Colombia, Sweden, Ireland, India, Russia, and T
urkey,[13][14] and in 2013 invested US$5 billion in R&D.[15]
In 2010, Huawei recorded profit of 23.8 billion CNY (3.7 billion USD).[16] Its p
roducts and services have been deployed in more than 140 countries and it curren
tly serves 45 of the world's 50 largest telecoms operators.[17]
Contents
1 Name
2 History
2.1 Early years
2.2 International expansion
2.3 Investment and partnerships
2.4 Recent performance
3 Corporate affairs
3.1 Leadership
3.2 Ownership
4 Partners and customers
5 Products and services
5.1 Telecom networks
5.2 Global services
5.3 Ascend smartphones and devices
5.4 Tecal servers
6 Competitive position
6.1 Sales
6.2 Recognition
6.3 Sponsorship
7 Corporate social responsibility
8 Criticisms and controversies
8.1 Intellectual property rights
8.2 Security concerns
8.3 Treatment of workforce and customers
9 See also
10 References
11 Further reading
12 External links
Name
Huawei is, the official English transliteration of the Chinese name ?? (simplifi
ed Chinese: ??; traditional Chinese: ??; pinyin: Huwi). The character ? means "spl
endid" or "magnificent", but can also mean "China". The character ? means "actio
n" or "achievement".[citation needed] Therefore, Huawei means either 'splendid a
chievement', or 'action for China'.[citation needed] [18]
History
Early years
During the 1980s, China's government pressed forward a multi-pronged strategy to
modernize the country's underdeveloped telecommunications infrastructure. A cor
e component of the telecommunications network was telephone exchange switches, a
nd in the late 1980s several Chinese research groups endeavored to acquire and d
evelop the technology, usually through joint ventures with foreign companies.
Ren Zhengfei, a former deputy director of the People's Liberation Army engineeri
ng corp, founded Huawei in 1987 in Shenzhen. Rather than relying on joint ventur
es to secure technology transfers from foreign companies, Ren focused on indigen
ous research and development to produce the switches. At a time when 100% of Chi
na's telecommunications technology was imported from abroad, Ren hoped to build
a domestic Chinese telecommunication company that could take on foreign competit

ors.[19]
The company reports that it had RMB 21,000 in registered capital at the time of
its founding. The Far Eastern Economic Review also reported that it received an
$8.5 million loan from a state-owned bank, though the company has denied the exi
stence of the loan.[6][20]
During its first several years the company's business model consisted mainly of
reselling private branch exchange (PBX) switches imported from Hong Kong. Meanwh
ile, it was reverse-engineering imported switches and investing heavily in resea
rch and development to manufacture its own technologies.[6] By 1990 the company
had approximately 500 R&D staff, and began its own independent commercialization
of PBX switches targeting hotels and small enterprises.[21]
The company's first major breakthrough came in 1993, when it launched its C&C08
program controlled telephone switch. It was by far the most powerful switch avai
lable in China at the time. By initially deploying in small cities and rural are
as and placing emphasis on service and customizability, the company gained marke
t share and made its way into the mainstream market.[22] The company also develo
ped collusive joint venture relationships with local authorities, whereby it wou
ld provide "dividends" to the local officials in exchange for their using Huawei
products in the network. Ahrens writes that these methods were "unorthodox, bor
dering on corrupt," but not illegal.[6]
Huawei also gained a key contract to build the first national telecommunications
network for the People's Liberation Army, a deal one employee described as "sma
ll in terms of our overall business, but large in terms of our relationships."[2
0] In 1994, founder Ren Zhengfei had a meeting with Chinese president Jiang Zemi
n, telling him that "switching equipment technology was related to international
security, and that a nation that did not have its own switching equipment was l
ike one that lacked its own military." Jiang reportedly agreed with this assessm
ent.[6]
Another major turning point for the company came in 1996, when the government in
Beijing adopted an explicit policy of supporting domestic telecommunications ma
nufacturers and restricting access to foreign competitors. Huawei was promoted b
y both the government and the military as a national champion, and established n
ew research and development offices.[6]
International expansion
Huawei office in Voorburg, Netherlands
Huawei Office in Ontario, Canada
In 1997, Huawei won its first overseas contract,[23] providing fixed-line networ
k products to Hong Kong company Hutchison Whampoa.[22] Later that year, Huawei l
aunched its wireless GSM-based products and eventually expanded to offer CDMA an
d UMTS. In 1999, the company opened a research and development (R&D) center in B
angalore, India to develop a wide range of telecom software.[21] From 1998 to 20
03, Huawei contracted with IBM for management consulting, and underwent signific
ant transformation of its management and product development structure. After 20
00, Huawei increased its speed of expansion into overseas markets, having achiev
ed international sales of more than US$100 million by 2000[23] 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$75
0 million and joined the International Telecommunications Union (ITU). By 2002,
Huawei s international market sales had reached US$552 million.[21]
In 2004 Huawei continued its overseas expansion with a contract to build a third
-generation network for Telfort, the Dutch mobile operator.[21] This contract, v
alued at more than $US25 million, was the first such contract for the company in
Europe.[24]

In 2005, Huawei s international contract orders exceeded its domestic sales for th
e first time. Huawei signed a Global Framework Agreement with Vodafone. This agr
eement marked the first time a telecommunications equipment supplier from China
had received Approved Supplier status from Vodafone Global Supply Chain. The agr
eement established the terms and conditions for the supply of Huawei's solutions
to any one of the Vodafone operating companies worldwide.[25] Huawei also signe
d a contract with British Telecom (BT) for the deployment of its multi-service a
ccess network (MSAN) and Transmission equipment for BT's 21st Century Network (2
1CN), providing BT and the UK telecommunications industry with some infrastructu
re necessary to support future growth as these companies are multi vendor infras
tructure.[26]
In May 2008, Huawei and Optus developed a mobile innovation centre in Sydney, Au
stralia, providing facilities for engineers to develop new wireless and mobile b
roadband concepts into "ready for market" products.[27] In 2008, the company emb
arked on its first large-scale commercial deployment of UMTS/ HSPA in North Amer
ica providing TELUS's new next generation wireless network and Bell Canada with
high-speed mobile access.[28]
Huawei delivered one of the world s first LTE/EPC commercial networks for TeliaSon
era in Oslo, Norway in 2009. The company launched the world's first end-to-end 1
00G solution from routers to transmission system that same year, to help meet th
e rapid growth of network traffic and enhance router efficiency and reliability.
[21]
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.[29] In late 2010 it was r
eported 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.[30][31]
In October 2012, it was announced that Huawei would move its UK headquarters to
Green Park, Reading, Berkshire.[32] The company also, in an effort to increase i
ts prominence in the United States, became the main sponsor of the Jonas Brother
s' 2013 summer tour.[33]
In September 2013, Huawei opened a new Canadian office in Regina, Saskatchewan Hua
wei had collaborated with the local carrier SaskTel to build its HSPA+ and LTE n
etworks. The company also announced that SaskTel would carry its new Ascend Y300
smartphone.[34]
In October 2013, Huawei has been selected by TDC A/S as a sole vendor to moderni
ze the nationwide GSM/UMTS/LTE network in Denmark and provide managed services o
ver a six year period. The value of the contract is over $700 million over the t
erm of the agreement.[35]
Investment and partnerships
Huawei has focused on expanding its mobile technology and networking solutions t
hrough a number of partnerships. In March 2003, Huawei and 3Com Corporation form
ed a joint venture company, 3Com-Huawei (H3C), which focused on the R&D, product
ion and sales of data networking products. The company later divested a 49% stak
e 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 techno
logy products. The US$100 million investment gave the company a 49% stake in the
venture, while Siemens held a 51% stake.[21] In 2007, after Nokia and Siemens c
o-founded Nokia Siemens Networks, Siemens transferred all shares it held in TD T
ech to Nokia Siemens Networks. At present, Nokia Siemens Networks and Huawei hol
d 51% and 49% shares of TD Tech respectively.[36]

In 2006, Huawei established a Shanghai-based joint R&D center with Motorola to d

evelop UMTS technologies.[21] Later that year, Huawei also established a joint v
enture with Telecom Venezuela, called Industria Electronica Orinoquia, for resea
rch and development and sale of telecommunications terminals. Telecom Venezuela
holds a 65% stake while Huawei holds the remaining 35% stake.[37]
Huawei and American security firm Symantec announced in May 2007 the formation o
f a joint-venture company to develop security and storage solutions to market to
telecommunications carriers. Huawei initially owned 51% of the new company, nam
ed Huawei Symantec Inc. while Symantec owned the rest. The joint-venture was bas
ed in Chengdu.[38] In March, 2012, Symantec announced the sale of its portion of
the joint venture to Huawei.[39]
Grameenphone Ltd. and Huawei won the Green Mobile Award at the GSMA Mobile Award
s 2009.[40] In March 2009, the Wimax Forum announced four new members to its Boa
rd of Directors including Thomas Lee, the Vice Director of the Industry Standard
s Department at Huawei.[41]
In 2008, Huawei launched a joint venture with UK-based marine engineering compan
y, Global Marine Systems, to deliver undersea network equipment and related serv
ices.[42]
Recent performance
In April 2011, Huawei announced an earnings increase of 30% in 2010, driven by s
ignificant growth in overseas markets, with net profit rising to RMB23.76 billio
n (US$3.64 billion; 2.23 billion) from RMB18.27 billion in 2009.[43] In 2010 sale
s outside China continued to be the main driver of Huawei s business. Overseas rev
enue 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 investme
nt last year.[44]
Huawei's revenues in 2010 accounted for 15.7% of the $78.56 billion global carri
er-network-infrastructure market, putting the company second behind the 19.6% sh
are of Telefon AB L.M. Ericsson, according to market-research firm Gartner.[44]
Huawei is targeting a revenue of $150 million through its enterprise business so
lutions in India in the next 12 months. It denied using Chinese subsidies to gai
n global market share after being recently accused by US lawmakers and EU offici
als of unfair competition at best.[45][46]
Corporate affairs
Huawei classifies itself as a "collective" and does not refer to itself as a pri
vate 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 e
ssential to the company's receipt of state support at crucial points in its deve
lopment."[47] McGregor argued that "Huawei's status as a genuine collective is d
oubtful."[47]
Leadership
Ren Zhengfei is the president of Huawei and has held the title since 1987.[48] H
uawei disclosed its list of board of directors for the first time in 2010. Ms. S
un Yafang is board chair. As of 2011, the members of the board[49] are Ms. Sun Y
afang,[50][51] Guo Ping, Xu Zhijun, Hu Houkun,[52] Ren Zhengfei,[53] Xu Wenwei,
Li Jie, Ding Yun, Meng Wanzhou, Chen Lifang,[54] Wan Biao, Zhang Pingan, and Yu
Chengdong.[49] The members of the Supervisory Board are Liang Hua, Peng Zhiping,
Ren Shulu, Tian Feng, and Deng Biao.[55] Richard Yu Chengdong is the Chairman o
f Huawei Device, its mobile phone division.[56] On 1 July 2013, Huawei Device an
nounced former head of Nokia Colin Giles joined the company as Executive Vice Pr

esident of Consumer Business.[56]

Ownership
Huawei describes itself as an "employee owned" company, partly as a means of cou
nteracting perceptions of Chinese government involvement. However, the actual ow
nership structure is opaque and surrounded by a culture of secrecy.[6] According
to Caixin magazine, "even long-time employees admit the [shareholding] system i
s nearly impossible to understand."[57] Employees receive no information about t
heir holdings, and their shares do not entitle them to any voice in management d
ecisions. The company's 50,000+ employees outside China are not given shares.[6]
Richard McGregor, author of The Party: The Secret World of China's Communist Ru
lers, said that the majority of shares are likely owned by Ren Zhengfei and Ren'
s managers, though the company states Ren directly owns less than 1.5%.[47]
Partners and customers
As of the start of 2010, approximately 80% of the world's top 50 telecoms compan
ies worked with Huawei.[58] Prominent partners include:
BT[59]
Vodafone[60][61]
Motorola[62][63]
Orange[64]
T-Mobile
Talk Talk
Portugal Telecom
Cox Communications
Bell Canada
Clearwire.[58]
In May 2011 Huawei won a contract with Everything Everywhere, the UK s biggest com
munication company, to enhance its 2G network. The four-year deal represents Hua
wei's first mobile network deal in the UK.[65]
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 enterpris
e customers, e.g. Government Solutions[66] etc.
Devices, manufacturing electronic communications devices[7]
Huawei announced its Enterprise business in January, 2011 to provide network inf
rastructure, fixed and wireless communication, data center, and cloud computing
solutions for global telecommunications customers.[67] Huawei has stated that it
aims to increase enterprise sales to US$4 billion in 2011 and $15 billion withi
n three to five years.[68][69]
Telecom networks
Huawei offers a variety of network technologies and solutions to help telecommun
ications operators expand the capacity of their mobile broadband networks. Huawe
i s core network solutions offer mobile and fixed softswitches, plus next-generati
on home location register and Internet Protocol Multimedia Subsystems (IMS). Hua
wei assists content service providers looking to migrate from copper to fiber wi
th solutions that support xDSL, passive optical network (PON) and next-generatio
n PON (NG PON) on a single platform. The company also offers mobile infrastructu
re, broadband access and service provider routers and switches (SPRS). Huawei s so
ftware products include service delivery platforms (SDPs), BSSs, Rich Communicat
ion Suite and digital home and mobile office solutions.[70]
In 2010, revenues for Telecom Networks were US$18.79 billion.[71]

Global services
Huawei Global Services provides telecommunications operators with equipment to b
uild and operate networks as well as consulting and engineering services to impr
ove operational efficiencies.[65] These include network integration services suc
h as those for mobile and fixed networks; assurance services such as network saf
ety; and learning services, such as competency consulting.[70]
In 2010, Huawei won 47 managed services contracts to help improve network perfor
mance and efficiency for customers, as well as reducing the costs of network ope
rations and maintenance.[72] In 2010 Huawei's global services revenues grew 28.6
% to US$4.82 billion.[73]
Huawei E220 HSDPA USB modem
Ascend smartphones and devices
Smartphone Huawei Ascend P6
Huawei's Devices division provides white-label products to content-service provi
ders, including USB modems, wireless modems and wireless routers for mobile wifi
,[74][75] embedded modules, fixed wireless terminals, wireless gateways, set-top
boxes, mobile handsets and video products.[76] 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, Huawei Honor 6[77] and U8150. In 2010, Huawei Devices shipped 120 million
devices around the world.[7] 30 million cell phones, of which 3.3 million units
were smartphones, were shipped to markets such as Japan, the United States and E
urope.[78]
Tecal servers
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cember 2014)
Competitive position
Huawei Technologies Co Ltd, is the world's largest telecom equipment maker[5][79
] and China s largest telephone-network equipment maker.[80] As of 2008, Huawei ra
nked first in terms of global market share in the mobile softswitches market,[81
] tied with Sony Ericsson for lead market share in mobile broadband cards by rev
enue,[82] ranked second in the optical hardware market,[83] stayed first in the
IP DSLAM market,[84] and ranked third in mobile network equipment.[85] In 2009,
Huawei was ranked No. 2 in global market share for radio access equipment.[86] I
n addition, Huawei was the first vendor to launch end-to-end (E2E) 100G solution
s, enabling operators to establish enhanced ultra-broadband networks, improving
their service and simplifying their network architecture.[87][88]
According to the World Intellectual Property Organization (WIPO) on 27 January 2
009, Huawei was ranked as the largest applicant under WIPO's Patent Cooperation
Treaty (PCT), with 1,737 applications published in 2008. Overall, the total numb
er of international patent filings under WIPO's PCT for 2008 represents the high
est number of applications received under the PCT in a single year and China imp
roved its ranking by one place, to become the sixth largest user of the PCT, wit
h 6,089 filings.[89] As of February 2011, Huawei has applied for 49,040 patents
globally and has been granted 17,765 to date.[90]
Sales
Huawei's global contract sales for 2006 reached US$11 billion (a 34% increase fr
om 2005), 65% of which came from overseas markets.[91][92] By the end of 2008, g
lobal contract sales of Huawei Technologies, China's largest telecoms gear maker
, jumped 46 percent to US$23.3 billion.[93] Huawei experienced sales exceeding U
S$30 billion in 2009,[93][94] and global sales increased by 24 percent to 185.2
billion yuan in 2010.[95]
Recognition

Huawei Technologies was one of six telecom industry companies included in the Wo
rld's Most Respected 200 Companies list compiled by Forbes magazine in May 2007.
[96] In December 2008, BusinessWeek magazine included Huawei in their inaugural
list of "The World's Most Influential Companies".[97]
In 2010 Fast Company ranked Huawei the fifth most innovative company in the worl
d.[98] The same year, Huawei received three honors at the Global Telecom Busines
s Innovation Awards including "Green base station innovation", "Wholesale networ
k innovation" and "Consumer voting innovation" awards with Vodafone, BT and Talk
Talk, respectively.[99] In 2010 Frost & Sullivan recognized Huawei as the 2010 S
DM Equipment Vendor of the Year[100] and in the contact center application marke
t with the 2010 Asia Pacific Growth Strategy Leadership Award.[101] On 29 July 2
010, Huawei was recognized by British Telecom with Best in Class 21CN Solution M
aturity, Value, Service and Innovation award, for its innovation and contributio
n in 21CN and Next Generation Access project.[102] Also in 2010 The Economist re
cognized Huawei with its Corporate Use of Innovation Award.[103] In May 2011 Hua
wei 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 cap
able of evolving into LTE, and of those that have deployed SingleRAN networks, m
ore than 40 operators have announced the launch or the imminent launch of distin
ct LTE services.[104]
Huawei has been described as "perhaps China's most globally successful company".
[47]
Sponsorship
Huawei sponsors Borussia Dortmund
Huawei sponsors Bundesliga club Borussia Dortmund.[105] On 15 September 2013, Hu
awei were announced as the new shirt sponsors of A-League club Wellington Phoeni
x F.C. as well as the sponsor of Liga de Ftbol Profesional (LFP) in Spain.[106]
On 17 January 2014, Arsenal F.C. announced that Huawei will become their officia
l "Global Smartphone Partner."[107]
In March 2014, Huawei becomes the shirt sponsor of Rayo Vallecano for two La Lig
a matches against Real Madrid and Athletic Bilbao.[108]
In April 2014, Huawei became the "Official Partner" of Paris Saint-Germain for t
he next three seasons.[109]
Huawei debuted to the field of Cricket in April 2014 by becoming the principal s
ponsor of Royal Challengers Bangalore, a domestic cricket team that plays in the
Indian Premier League.
Ghana Football Association has announced Huawei as its latest sponsor for the Bl
ack Stars ahead of the 2014 FIFA World Cup finals in Brazil. The one-year sponso
rship deal is worth US$100,000 plus products.[110]
On 12 September 2014, Galatasaray S.K. (football) announced that Huawei will bec
ome their journey sponsor for one year period in Turkish National Sper Lig.
Since October 2014 Huawei has been the main sponsor of South African Premier Soc
cer League club Ajax Cape Town.[111]
On January 4, 2015 Huawei was announced as the main sponsor of the current champ
ion of the Colombian First Division Tournament, Independiente Santa Fe, for the
next two years (2015 -2017).[112]
Corporate social responsibility

As part of its international support for technology and telecommunications educa

tion and training, Huawei has contributed funding and equipment to a number of u
niversities and training centers in countries such as Kenya,[113] India,[114] In
donesia,[115][116] Bangladesh,[117] and Nigeria.[114] In the U.S., since 2008, H
uawei has sponsored MIT s Communications Futures Program, a research collaboration
that studies the future of the telecommunications industry.[118][119][120]
In 2010, Huawei joined the Broadband Commission for Digital Development, formed
by the ITU and UNESCO to support broadband deployment to developing nations.[121
][122][123] In the same year, Huawei joined the Green Touch consortium, an indus
try group that aims to make communications networks 1000 times more energy effic
ient than they are today.[124]
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 Univer
sity, in Ottawa, Canada, to establish a research lab dedicated to cloud computin
g technology and services.[125] The same month, Huawei published its 2010 Corpor
ate Social Responsibility (CSR) Report.[126][127]
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 switch
es.[128] According to statement by Cisco, by July 2004 Huawei removed the contes
ted code, manuals and command-line interfaces and the case was subsequently drop
ped.[129] Both sides claimed success
with Cisco asserting that "completion of la
wsuit marks a victory for the protection of intellectual property rights", and H
uawei's partner 3Com (which was not a part of lawsuit) noting that court order p
revented Cisco from bringing another case against Huawei asserting the same or s
ubstantially similar claims.[130] Although Cisco employees allegedly witnessed c
ounterfeited technology as late as September 2005,[131] in a retrospective Cisco
's Corporate Counsel noted that "Cisco was portrayed by the Chinese media as a b
ullying multi-national corporation" and "the damage to Cisco's reputation in Chi
na outweighed any benefit achieved through the lawsuit";[132] however the same a
rticle that quoted the remarks of the Corporate Counsel also notes the remarks o
f 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 ine
ffectual if litigants did not pursue all of the legal remedies available to them
.[132]
Huawei's chief representative in the US subsequently claimed that Huawei had bee
n vindicated in the case, breaking a confidentiality clause of Huawei's settleme
nt with Cisco. In response Cisco revealed parts of the independent expert's repo
rt produced for the case which proved that Huawei had stolen Cisco code and dire
ctly copied it into their products.[133]
In June 2004, a Huawei employee was caught after hours diagramming and photograp
hing circuit boards from a competitor booth at the SuperComm tradeshow.[134] The
employee denied the accusation, but was later dismissed.[135][136]
In July 2010, Motorola filed an amended complaint that named Huawei as a co-defe
ndant in its case against Lemko for alleged theft of trade secrets.[137][138] Th
e case against Huawei was subsequently dropped in April 2011.[139][140][141] In
January 2011, Huawei filed a lawsuit against Motorola to prevent its intellectua
l 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.
[142][143][144][145] In April 2011, Motorola and Huawei entered into an agreemen
t to settle all pending litigation,[140][146][147] with Motorola paying an undis
closed sum to Huawei for the intellectual property that would be part of the sal

e to NSN.[148][149][150]
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.[151][152][153] The following day, ZTE countersued Huawei for paten
t infringement in China.[154][155]
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 una
uthorized access by the Chinese government and the Chinese People's Liberation A
rmy,[156][157][158][159] given that Ren Zhengfei, the founder of the company, se
rved as an engineer in the army in the early 1980s.[160] In the United Kingdom,
the Conservative Party raised concerns about security over Huawei s bid for Marcon
i in 2005,[158] and the company's equipment was mentioned as an alleged potentia
l threat in a 2009 government briefing by Alex Allan, chairman of the Joint Inte
lligence Committee.[161] In December 2010, Huawei opened a Cyber Security Evalua
tion Centre to test its hardware and software to ensure they can withstand growi
ng cyber security threats.[162][163] In the U.S., some members of Congress raise
d questions about the company's proposed merger with communications company 3Com
in 2008,[164] and its bid for a Sprint contract in 2010.[160] In addition, Huaw
ei withdrew its purchase of 3Leaf systems in 2010, following a review by the U.S
. Committee on Foreign Investment (CFIUS).[157]
In a 2011 open letter, Huawei stated that the security concerns are "unfounded a
nd unproven" and called on the U.S. government to investigate any aspect of its
business.[165][166] The US-based non-profit organization Asia Society carried ou
t 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 u
nfavorable 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.[167] However, another
article unrelated to the report published by the Asia Society reported that, "fe
ar that the P.R.C. government could strongarm private or unaffiliated Chinese gr
oups into giving up cyber-secrets is reflected in the U.S. government's treatmen
t of Chinese telecom company Huawei."[168]
In October 2009, the Indian Department of Telecommunications reportedly requeste
d national telecom operators to "self-regulate" the use of all equipment from Eu
ropean, U.S. and Chinese telecoms manufacturers following security concerns.[169
] Earlier, in 2005, Huawei was blocked from supplying equipment to India's Bhara
t Sanchar Nigam Limited (BSNL) cellular phone service provider.[170] In 2010, th
e Indian Central Bureau of Investigation (CBI) insisted on cancelling the rest o
f the Huawei contract with BSNL and pressed charges against several top BSNL off
icers regarding their "doubtful integrity and dubious links with Chinese firms".
[171][172] In June 2010, an interim solution was introduced that would allow the
import of Chinese-made telecoms equipment to India if pre-certified by internat
ional security agencies such as Canada s Electronic Warfare Associates, US-based I
nfoguard, and Israel s ALTAL Security Consulting.[173]
In October 2011, the Wall Street Journal reported that Huawei had become Iran's
leading provider of telecommunications equipment, including monitoring technolog
ies that could be used for surveillance.[174] 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 te
chnologies and equipment anywhere in the world".[175]
In December 2011, Bloomberg reported that the U.S. is invoking Cold War-era nati
onal security powers to force telecommunication companies including AT&T Inc. an
d Verizon Communications Inc. to divulge confidential information about their ne

tworks in a hunt for Chinese cyber-spying, with Richard Falkenrath, a senior fel
low in the Council on Foreign Relations Cyberconflict and Cybersecurity Initiati
ve, saying, "This is beyond vague suspicions...Congress is now looking at this a
s well, and they re doing so based on very specific material provided them in a cl
assified setting by the National Security Agency." The action represents a conce
rn that China and other countries may be using their growing export sectors to d
evelop built-in spying capabilities in U.S. networks. The U.S. House Permanent S
elect Committee on Intelligence said it would investigate potential security thr
eats posed by some foreign companies, and mentioned Huawei specifically. A spoke
sman for Huawei said that the company conducts its businesses according to norma
l business practices and actually welcomed the investigation.[176]
In 2001, it was alleged that Huawei Technologies India had developed telecommuni
cations equipment for the Taliban in Afghanistan, and newspapers reported that t
he Indian government had launched a probe into the firm's operations.[177][178]
Huawei responded, stating that the company did not have "any link with the Talib
an", as its only customers are telecommunications carriers[179] and its faciliti
es "always operate according to U.N. rules and the local laws of each country".[
180] On 15 December 2001, the Indian authorities announced that they had not fou
nd any evidence that Huawei India had any connection to the Taliban,[181] althou
gh the U.S. remains suspicious.[182]
In March 2012, Australia media sources reported that the Australian government h
ad excluded Huawei from tendering for contracts with NBN Co, a government-owned
corporation that is managing the construction of the National Broadband Network,
[183] following advice from the Australian Security Intelligence Organisation re
garding security concerns.[184] The Attorney-General's Department stated in resp
onse to these reports that the National Broadband Network is "a strategic and si
gnificant government investment, [and] we have a responsibility to do our utmost
to protect its integrity and that of the information carried on it."[185]
In July 2012, Felix Lindner and Gregor Kopf gave a conference at Defcon to annou
nce that they uncovered several critical vulnerabilities in Huawei routers (mode
ls AR18 and AR29)[186] which could be used to get remote access to the device. T
he researchers said that Huawei "doesn't have a security contact for reporting v
ulnerabilities, doesn't put out security advisories and doesn't say what bugs ha
ve been fixed in its firmware updates", and as a result, the vulnerabilities hav
e not been publicly disclosed. Huawei replied that they were investigating the c
laims.[187]
On 8 October 2012, a US House Intelligence Committee panel issued a report descr
ibing 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 im
migration, bribery, corruption, and copyright infringement.[188] However, a subs
equent White House-ordered review found no concrete evidence to support the Hous
e report's espionage allegations.[78]
On 9 October 2012, a spokesman for Canadian Prime Minister Stephen Harper indica
ted that the Canadian government invoked a national security exception to exclud
e Huawei from its plans to build a secure government communications network.[189
]
On 25 October 2012, a Reuters report[78] wrote that according to documents and i
nterviews, an Iranian-based seller of Huawei (Soda Gostar Persian Vista) last ye
ar tried to sell embargoed American antenna equipment (made by American company
Andrew LLC to an Iranian firm MTN Irancell). Specifically, the Andrew antennas w
ere part of a large order for Huawei telecommunications gear that MTN Irancell h
ad placed through Soda Gostar, but the MTN Irancell says it canceled the deal wi

th Huawei when it learned

ipment was delivered.[78]
Irancell had canceled the
company was not aware of

the items were subject to sanctions and before any equ

Vic Guyang, a Huawei spokesman, acknowledged that MTN
order; Rick Aspan, a spokesman for CommScope, said the
the aborted transaction.[78]

On 19 July 2013, Michael Hayden, former head of U.S. National Security Agency an
d director of Motorola Solutions, said he was aware of hard evidence of spying a
ctivity by Huawei. Huawei and Motorola Solutions had previously been engaged in
intellectual property disputes for a number of years. Huawei's global cybersecur
ity Officer, John Suffolk, described the comments made by Hayden as "tired, unsu
bstantiated, defamatory remarks" and challenged him and other critics to present
any evidence publicly.[190][191]
In 2014 the New York Times reported, based upon documents leaked by Edward Snowd
en, that the U.S. National Security Agency has since 2007 been operating a cover
t program against Huawei. This involved breaking into Huawei's internal networks
, including headquarter networks and founder Ren Zhengfei's communications.[192]
Treatment of workforce and customers
A U.S. Army Strategic Studies Institute report on Argentina published in Septemb
er 2007 describes Huawei as "known to bribe and trap clients." The report detail
s unfair business practices, such as customers framed by "full-paid trips" to Ch
ina and monetary "presents" offered and later used by Huawei as "a form of extor
tion."[193]
According to a WikiLeaks cable, in 2006, Michael Joseph, then-CEO of Safaricom L
td, allegedly struggled to cancel a contract with Huawei due to poor after-sales
experience, after which the Kenyan government pressured him to reinstate the co
ntract.[194] When questioned regarding this incident, Joseph replied, "It [the c
able] is not a reflection of the truth as evidenced by Safaricom being a major p
urchaser of Huawei products including all 3G, switching and the recent OCS billi
ng system upgraded over the weekend."[195]
In May 2010, it was reported in the Times of India, that security agencies in In
dia became suspicious of Chinese Huawei employees after learning that Indian emp
loyees allegedly did not have access to part of Huawei's Bangalore research and
development (R&D) office building.[196] Huawei responded that the company employ
s 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 o
ur information assets and facilities".[197] 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.[196] Huawei stated that many of these e
mployees were on one-and-a-half-year international assignments to serve as a tec
hnical bridge between in-market teams and China, and that "all the Chinese emplo
yees had valid visas and did not overstay".[198]
In October 2007, 7,000 Huawei employees resigned and were then rehired on shortterm contracts, thereby apparently avoiding the unlimited contract provisions of
the Labour Contract Law of the People's Republic of China. The company denied i
t was exploiting loopholes in the law, while the move was condemned by local gov
ernment and trade unions.[199][200]
Huawei's treatment of its workforce in Guangdong Province, Southern China also t
riggered 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.[201][202]
In its 2010 Corporate Social Responsibility report, Huawei highlighted the impor
tance of employee health and safety. In 2010, Huawei provided annual health chec
ks to all full-time employees and performed 3,200 checks to employees exposed to

occupational health risks.[203]

Also, in 2011 Huawei initiated a Scholarship program, "Huawei Maitree Scholarshi
p", for Indian students studying in China.[204]
See also
Portal icon
China portal
Portal icon
Companies portal
Femtocell
High Speed Packet Access and HSPA+
Huawei E5
Huawei SingleRAN
Huawei Symantec
Joint venture between Huawei and Symantec
Shortest Path Bridging
Huawei 4G eLTE in Africa Sub Sahara
ZTE
Ericsson
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Further reading
"Huawei probed for security, espionage risk", 60 Minutes, Sunday, 7 October
2012. An investigative report on Huawei by Steve Kroft.
U.S. panel cites risks in Chinese Equipment 9 October 2012 New York Times
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