Scribd Logo
Upload

Welcome to Scribd!

  • 75 views

    International Marketing Environment - Huawei Technologies Corporation-The Role of Home Government

    Uploaded by

    Phan Dara
    Huawei is a Chinese technology company that has rapidly expanded internationally but faces challenges due to its close ties to the Chinese government. Some governments restrict or ban Huawei due to concerns the Chinese government could use Huawei for spying. In 2018, the US banned government agencies from using Huawei products and recommended individuals do the same, which was followed by similar bans in other countries like Australia and the UK. Huawei denies the spying allegations but its internationalization efforts face an ongoing struggle with governments worried about Chinese state influence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    International Marketing Environment - Huawei Technologies Corporation-The Role of Home Government

    Uploaded by

    Phan Dara
    75 views1 page
    Huawei is a Chinese technology company that has rapidly expanded internationally but faces challenges due to its close ties to the Chinese government. Some governments restrict or ban Huawei due to concerns the Chinese government could use Huawei for spying. In 2018, the US banned government agencies from using Huawei products and recommended individuals do the same, which was followed by similar bans in other countries like Australia and the UK. Huawei denies the spying allegations but its internationalization efforts face an ongoing struggle with governments worried about Chinese state influence.

    Original Description:

    Original Title

    International marketing environment - Huawei Technologies Corporation-the role of home government

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Huawei is a Chinese technology company that has rapidly expanded internationally but faces challenges due to its close ties to the Chinese government. Some governments restrict or ban Huawei due to concerns the Chinese government could use Huawei for spying. In 2018, the US banned government agencies from using Huawei products and recommended individuals do the same, which was followed by similar bans in other countries like Australia and the UK. Huawei denies the spying allegations but its internationalization efforts face an ongoing struggle with governments worried about Chinese state influence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views1 page

    International Marketing Environment - Huawei Technologies Corporation-The Role of Home Government

    Uploaded by

    Phan Dara
    Huawei is a Chinese technology company that has rapidly expanded internationally but faces challenges due to its close ties to the Chinese government. Some governments restrict or ban Huawei due to concerns the Chinese government could use Huawei for spying. In 2018, the US banned government agencies from using Huawei products and recommended individuals do the same, which was followed by similar bans in other countries like Australia and the UK. Huawei denies the spying allegations but its internationalization efforts face an ongoing struggle with governments worried about Chinese state influence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    206  Part II  Deciding which markets to enter

    Exhibit 6.1
    Huawei Technologies Corporation: the role of home government
    in the internationalization process – good and bad

    So the key future challenge for Huawei is com-


    peting in two market environmental structures – one
    local and the other global.
    The development in 2018 shows that the close
    connection to the Chinese government can also
    have a negative effect on the internationalization
    of Huawei. The company plans to dominate the
    next generation of wireless communications called
    5G, but its hopes are threatened by governments
    around the world, which are restricting the compa-
    ny’s prospects and even banning it from operating
    in some areas. In mid-August 2018, the US Congress
    Huawei is rapidly penetrating the Asian ­markets
    for smartphones prohibited US government agencies from purchas-
    Source: Ivan Garcia/Shutterstock.com. ing or using telecommunications and surveillance
    products from Chinese companies like ZTE and
    By 2018, Huawei Technologies Corporation had Huawei. The US intelligence agencies also recom-
    become the largest telecom vendor in China. mended Americans not to use Huawei smartphones
    Government-run corporations remain the main or other equipment from the company. This kind of
    driver for the Chinese national economy. Historically, ban for using Huawei was followed up by similar
    the telecommunication sector in China has been initiatives in Australia, Canada, UK, Japan and New
    closely controlled by the central government through Zealand.
    the Ministry of Information Industry (MII). However, it The reason for these actions in 2018 is the inter-
    is apparent that the Chinese telecommunication sec- national concern that the Chinese government has
    tor is in a process of transformation from a centrally asked Huawei and other companies under Chinese
    controlled sector to a semi-capitalist industry. China government influence to assist with intelligence
    has opened up to more foreign investments. But gathering, in order to spy on them, stealing corpo-
    China’s central government will continue to play a rate, government or military secrets. In this connec-
    central role in stimulating technical progress through tion Huawei is closely tied to the government, as the
    alliances, mergers and acquisitions. Also Huawei founder, Ren Zhengfei, is a former technologist in
    receives plenty of state support, including soft loans the People’s Liberation Army.
    to help with its international expansion. Huawei denies all these allegations and says
    The MII has also continued to encourage local there is no evidence for these. At the beginning of
    Chinese operators such as China Mobile and China December 2018, CFO of Huawei (and daughter of the
    Telecom to purchase telecommunications equip- founder), Meng Wanzhou was arrested in Canada
    ment from Chinese manufacturers [e.g. Huawei, ZTE with allegations that she had violated international
    (Zhongxing), Datang and Great Dragon]. sanctions against Iran.

    Sources: based on www.huawei.com and other public sources.

    Financial activities
    Through the membership of international financial organizations such as the International
    Monetary Fund (IMF) and the World Bank, the national government can assume its role as
    an international banker. The granting of subsidies is another financially based promotional
    activity of national governments.

    You might also like