inside the (rather awkward) charm offensive that huawei hopes will convince the world it\'s ok

by:CAI YI JIE     2019-08-13
SHENZHEN, China-
Huawei Technology Co. , Ltd. Ltd.
When asked why the world\'s largest manufacturer of telecom equipment should be trusted in espionage, intellectual property theft, conspiracy and fraud charges, Eric Xu, the rotating chairman, seemed frustrated, just as Telecom is preparing to spend billions of dollars on 5g devices, the charge could hurt its global expansion plan.
In a mahogany paneled conference room at Huawei\'s luxury headquarters in Shenzhen, Xu turned the company\'s public relations crisis into a philosophical discussion about what could never be proved in the future.
In Huawei\'s case, it was a spy activity by the Chinese government.
Take Xu as an example. this is a murder reporter.
\"I would say, for example, that you might kill people.
Do you believe I would say I suspect you might commit a crime or kill someone before you go to see God one day ? \" Xu said through an interpreter
In a late interview with four Canadian media outlets.
\"It\'s a suspicion that you can never prove to be negative.
It\'s a black humor, but Xu makes sense.
As Martin Reese, a British physicist, said, \"there is no evidence, not no evidence \".
Even so, it\'s strange for a company to launch a charm offensive to convince the public that it\'s not a national security threat. Self-
For Huawei, promotion is not a natural thing, because Huawei has traditionally avoided media attention and rushed to win customers.
But it feels like it has to defend itself because it believes the suspicion is based on its identity as a Chinese company, not evidence.
The risk of 5g is high and Huawei is trying to stay ahead.
Huawei\'s de-vandals are not making up concerns. The U. S.
Huawei and its Chinese rival ZTE are effectively banned.
From its market after 2012 11-
The monthly investigation failed to refute relations with the Chinese government or military (
The report found that Huawei particularly avoided talking about ownership issues).
Australia followed suit in last August.
After the Communist Party of China introduced the national intelligence law in 2017, Western security officials have also become nervous, which requires the support, assistance and cooperation of all organizations and citizens across the country.
Cooperate with intelligence officials
In other words, spies.
In last December, Canada arrested Meng Wanzhou, Huawei\'s chief financial officer, the daughter of the founder. S.
Faced with allegations of conspiracy to commit bank fraud and bank fraud related to Huawei\'s commercial transactions in Iran.
Apparently in retaliation, China has arrested two Canadians and upgraded the drugs of a third man.
Imprisonment for the death penalty.
China\'s foreign minister has warned that if Canada does not release Meng, there will be \"serious consequences \". Meng is still under house arrest in Vancouver, fighting extradition.
Ongoing trade war between China and the United StatesS.
Canada can\'t help either.
Huawei was misunderstood by this diplomatic farce.
It believed it was in line with all the security agreements, but despite its efforts, it was countered
China is unhappy with its subversive climb to the top.
However, it admits that it is never good at telling stories, so 32-year-
The old company shared its rags for the first time. to-
Rich history in media efforts to change the narrative that cannot be trusted.
It is also calling for industry
A broad network security standard believes that it makes no sense to pick out one participant in the global supply chain.
Members of Huawei\'s top leadership team, including Xu and founder Ren Zhengfei, who had previously been reluctant to give executives an interview, are now conducting rounds and inviting journalists from all over the world to visit its campus. Attracted by increasingly difficult to describe as rare or exclusive \"rare\" visits and \"exclusive\" interviews.
Huawei is also strengthening its public relations team in Canada and other places, and telecom operators preparing to select 5g suppliers are waiting for a government review that will determine whether Huawei will enter or exit.
Given its footprint in the United StatesS.
Xu said Huawei did not waste time in persuading Americans to accept its products.
But it has a lot of losses elsewhere.
In 2018, nearly half of the company\'s $107 billion in global revenue came from countries outside China, which for the first time exceeded $100 billion, according to its annual report.
More than a quarter (28. 4 per cent)
Revenue comes from Europe, the Middle East and Africa.
Canada is a relatively small market, but Huawei\'s revenue is still around $7 billion.
Its global revenue is 6 percentage points in North America.
But Canada is the third.
Xu said that the biggest destination for Huawei\'s R & D spending is Ottawa, whose center is known for its 5g innovation.
Huawei invests about $30 million a year (
10 per cent of its global research budget)
Basic research at Canadian universities.
It also operates with Telus Corp. and BCE Inc.
Both companies use their radio access network equipment in their 3g and 4g networks.
Huawei\'s media tour begins at a campus hotel in Shenzhen, a city about 12 years old in southern China.
There are 5 million people around Hong Kong.
The next stop is the Digital Transformation Center, a gorgeous building with floral patterns and \"millions\" embedded on marble floors
Dollar chandelier hanging on the ceiling.
Between this and the well-trimmed site, workers wearing straw hats sweep the fallen leaves on the grass, and it is easy to believe in the revenue figures in Huawei\'s annual report. (
Although it is a private company, it says it is owned by employees. )
The entrance to the building is followed by a showroom showing the technical advantages of the products used in smart cities, cardboard hook displayand cardboard packaging box, transportation and data centers.
A screen shows a map of each surveillance camera in Shenzhen
Testing with smartCity Technology
Huawei said it had reduced the unresolved murder rate to zero and helped prevent a child being kidnapped.
However, for a company that promotes the benefits of its monitoring equipment, it seems uncomfortable for the camera to aim in its direction.
When the reporter started shooting the screen, a representative pressed the switch to hide the camera map.
A few minutes after the visit, a Huawei spokesman said he was not allowed to be named for the article, saying that most media were biased against the company.
This is a challenge for Huawei, he said, because for cultural reasons, it has never responded to media requests in a coordinated and consistent manner throughout the organization.
He explained that Deng Xiaoping, who brought free-market reforms to China 40 years ago, encouraged companies to focus internally after hundreds of years of isolation to avoid hostility.
\"It\'s not just Huawei.
This is only Western prejudice against China.
It goes back to culture, \"he said.
\"Both countries and companies need to learn how to tell better stories.
That\'s why I can talk to you now.
The spokesman pointed out that as an example of Huawei\'s bias to fight backK.
The national cyber security report released last summer.
The report suggested improving Huawei\'s approach, but he said the media used a lot of words in the headlines, indicating that the United StatesK.
\"Attack\" the company.
The trip took place a few days ago in the United States. K.
The Huawei Network Security Assessment Center has released a new report, a watchdog set up to test the company\'s loopholes.
It reveals \"serious and systemic flaws in Huawei\'s software engineering and network security capabilities.
Reported that the United StatesK.
The safety system can only provide limited technical assurance for the equipment, but it \"does not believe that the defects found are the result of interference by the Chinese state.
Huawei said in a statement that it wouldK.
The company is seriously concerned and plans to spend $2 billion to transform its software engineering capabilities. (The U. K.
The company was also condemned for failing to disclose details of the plan. )
But Huawei realizes that if it wants to convince European players to buy its device, it needs to raise its voice, especially if it wants to deal with the security issues raised by the US. S.
And various security officials from other countries, including Canada.
The company is also not afraid of muscle bending.
For example, the spokesman expressed doubts about experts who criticized Huawei\'s security and pointed out that Canada is a \"main example\" and that there is a commercial interest at work.
Two of the three major operators (Bell and Telus)
Using Huawei devices at Rogers Communications
Ericsson from Sweden. (
Rogers used Huawei devices in the past but is now replacing them. )
If the Canadian government bans Huawei, Rogers is the only operator who will not face huge costs.
Telus chief executive ententyal le told investors that costs are important, while BCE\'s George Wells said costs could be resolved within the capital expenditure outlook.
\"If you are the first operator, I can put huge or astronomical costs on my competitors, why not,\" the spokesman said ? \".
Ren Zhengfei, a former military engineer, was 21,000 yuan in 1987 (about $4,200)
Shortly after Deng Xiaoping announced Shenzhen, Shenzhen is a fishing village with a population of 30,000 and a special economic zone with more market freedom.
Huawei\'s growth reflects growth in Shenzhen.
In their 1980 s, only a small number of government officials had telephone lines,
State-owned telephone companies are only expanding in the biggest cities.
Ren Zhengfei has opened up the rural market.
In 1991, he decided to focus on research and development and produced the company\'s first switch in 1994.
The technology is not the best, but Huawei is known for its customer service and willingness to tailor products to customer needs.
For example, when mice keep destroying cables, other equipment vendors tell their customers to get rid of mice.
Huawei makes mice-proof cables.
Huawei\'s first major customer in Europe
Telecom Netherlandsin 2004.
Then the British Telecom and Vodafone were signed in the United States. K.
In 2005, more than 1,500 networks have now been established around the world.
It also built a base station on Everest in 2007 and its equipment was used in one of Norway\'s first LTE networks to be used with Telia Sonera in 2009.
Europe clearly impressed the founders.
Huawei has recently completed a new campus, 12 of which are replicas of European cities such as Paris and Burgundy.
A bright orange electric train connects parts of the campus designed for 24,000 workers to the company
Charter line up and take them home at 6 in the evening. m.
Today, after thirty years of explosive growth,
Time startup is the world\'s largest manufacturer of telecom equipment with nearly 188,000 employees in more than 170 countries and regions.
It also sold more than 0. 2 billion smartphones in 2018, making it third.
Less than a decade after entering the device market in 2011, the largest smartphone provider.
Consumer business growth 45.
Nearly half of Huawei\'s revenue in 2018 (US$51. 9 billion).
However, its operator business fell by 1.
About 3 cents to 43 dollars. 8 billion.
\"Looking forward to the future, our carrier business needs to seize the first wave of business opportunities for 5g,\" the company said in its annual report . \".
Leroy Blimmeger, president of global security and management services, said Huawei has experienced a series of significant growth as mobile services increase from 2g to 3g to 4g, in a speech about the company\'s trajectory and culture
There is a view that Huawei\'s equipment is the cheapest and least efficient, but this has not necessarily been true since it turned to 4g.
Historically, Huawei\'s lower prices have helped it gain a foothold in emerging markets.
But London\'s Dexter Thillien said that by 2009, operators in developed countries realized that Huawei had provided good services at competitive prices.
Telecom analyst at Fitch Solutions.
\"4G is the first time Huawei has shown that it can compete with the best,\" he said . \".
The improvement in quality has also allowed the company to compete in Chinese cities, which were previously dominated by Western companies.
Now the three major mobile terminals in the country (
China Mobile, China Unicom, China Telecom)
Use multiple suppliers including Huawei.
Thillien and other analysts believe Huawei is a leader in 5g because of Huawei\'s large investment in research and its huge patent portfolio.
Huawei spends 10 to 15 of its budget on research and development every year, regardless of whether the financial situation is good this year.
40% of its employees
About 75,000 people. work in R&D.
At Huawei\'s materials lab in Shenzhen, a scientist explained how they tried to find the least corrosive, lightest material that allowed radio access devices to operate in harsh climates.
The goal is to extend the life cycle of 5g equipment to 10 years, which is the average life span before Telecom replaces the equipment.
Peter Richardson said Huawei\'s new system is light enough for a person to locate antennas and equipment that may have previously required cranes, research director at counterpoint research, and former head of competitive intelligence at Nokia.
The company has also adjusted its radio access devices to allow 5g downloads and 4g uploads, which will enable operators to roll out the network faster, Richardson said.
He also attributed these developments to Huawei\'s larger engineering workforce and R & D budget.
Nevertheless, Huawei operates without a sustainable technology or resource advantage --
If standards are raised, peers will catch up and no one monopolizes hiring --
But Blimmeger, who has worked with Cisco Systems Co. , Ltd. , Motorola Inc.
Nortel Network
Ericsson said, \"No one is customer-centric like Huawei.
The American started consulting for Huawei in 2005 and became the first non-
Chinese professors at Huawei University say keeping humble and afraid of becoming arrogant is also part of Huawei\'s DNA.
At the end of the 1990 s, management felt that it did not have the global expertise needed to expand its business and therefore hired Western consultants from international commercial machines. and Accenture.
The willingness to invest in improvements led to the opening of a university in 2005, with $50 million a year and 75,000 employees rotating to update their skills.
There is even a 5g \"strategic elite team \".
Both Thillien and Richardson said Huawei\'s ban would cause damage, which could cause delays as operators work with other suppliers.
But Thillien says the biggest loss will be the decline in competition between the two major suppliers from three to two, which brings fewer options to operators and hinders quality competition.
Analysts believe security concerns are justified, but they point out that there is no safe evidence to support the ban.
To show how much Huawei values violations, it has set up an internal ethics website that lists any employees who violate the rules, as well as their ID numbers, what they do and what the consequences are.
There are currently 189 people on the list, covering several years.
The ethics committee emails send an updated list to the entire company every month to six weeks.
\"People who violate the rules are famous because everyone in the company is aware of this.
This provides a very strong deterrent, \"said a spokesman.
Blimmeger said there is a very high standard of behavior in terms of network security and privacy protection.
\"Anyone who violates these rules will be automatically terminated,\" he said . \" He claims Huawei\'s standards are industry-leading.
\"In order to maintain the level of the competitive environment, we have always been more concerned than our peers in the industry.
\"Former violators of job loss include an employee in Poland, and Huawei fired him after being arrested on espionage charges in January (
Huawei said in a statement at the time that the allegations had nothing to do with the company and the worker denied them)
Two employees in the United StatesS.
Charged from T-Mobile US Inc. in 2012.
Huawei\'s cybersecurity lab employs 137 employees, many of whom have foldable mattresses under their desks if they need to take a nap.
Their motto, as shown in the demo, is: \"Don\'t assume, don\'t trust anyone, check everything.
\"In fact, journalists are not allowed to bring laptops in for security reasons.
Laboratory staff screen Huawei\'s products to ensure that the code meets the standards.
If not, the director can veto the product.
58 products were rejected in 2013.
In 2017 and 2018, the figure fell to zero, thanks to improvements in the organization\'s security practices.
Huawei also shared its source code with the government that wants to delve into it before allowing its devices to enter its network.
In Canada, Huawei has partnered with Bell, Telus and Saskatchewan Telecom Holdings to test its equipment.
In addition to the Communications Security Agency, there are also national crypto agencies.
Huawei says it adopts the industry-
Broad security standards will ease concerns and compete fairly in the evolution to 5g as these networks will touch life --
Key functions such as healthcare and self-caredriving cars.
\"It\'s time for us to come together as an industry to work with regulators, it\'s time to work with the government to build a common standard, saying if you want to play a role in this area, that\'s what you have to do. \"
For example, Telus is considering installing Huawei devices in its 5g network.
A Telus executive, who declined to be named, said Huawei was the most customizable supplier.
He compares buying from Huawei to going to a burger restaurant where you can pick the ingredients instead of going to McDonald\'s where the same Big Mac is every time.
Also, switch from Huawei
Its rivals are Ericsson and Nokia, while Samsung is in fourth place.
Because 5g devices from other vendors are not compatible with Huawei\'s existing 3g and 4g devices, expensive rip and replacement are required.
But that doesn\'t mean Telus trusts Huawei.
\"I don\'t think we trust anyone,\" the executive said . \".
\"We have been in operation for a long time because you can\'t trust the supplier to have a secure device.
\"When globalization permanently changed the supply chain about a decade ago, Telus took that mindset.
Previously, Western giants such as Nortel and Alcatel in France provided telecom equipment, especially in their backyard.
But a series of bankruptcies and industry consolidation have given Huawei room to expand its global operations.
In this industry
Huawei\'s entry into the Canadian market in 2008 caused widespread shock, although its entry was conditional.
For example, its equipment cannot be used for core networks and can only be used for less sensitive Radio Access parts.
The federal government and telecoms companies have also set up a system to test its vulnerability, which is largely operating in secret until last year, when the government responded to questions about Huawei\'s presence in the Canadian network, it disclosed its existence.
The Telus executive says Canada is one of the few countries that recognize the risks and act on them.
\"We believe we have the right formula from the beginning,\" he said . \".
\"I think those who think their network can get security by choosing a European supplier instead of a Chinese one ignore the issue.
\"Telus clearly has an economic interest in lobbying Huawei to use equipment in Canada\'s 5g network.
It wants to continue to allow the company\'s equipment on the periphery, but not the system allowed at the core.
The Canadian communications security agency and the public security agency are conducting a 5g security review and are expected to be released in the coming months.
In any case, Telus believes that no matter who provides the equipment, the company needs to manage risks in advance in the process of network engineering and architecture.
Both Ericsson and Nokia are working on research and development in China.
Ericsson employs more than 12,000 employees in Northeast Asia and is recruiting 5g in China, with 54 offices in mainland China, Hong Kong and Taiwan.
Presumably, Chinese laws that force Chinese citizens to cooperate with the Communist Party will apply to citizens, whether they work in Huawei or in the West
Based on competitors.
\"What\'s the difference for me, the risk is the same,\" Telus executives said . \".
But the difference for many governments is that Huawei\'s equity structure and its relationship with the Chinese government lacks transparency.
Australia and the United StatesS.
While countries such as Germany, Italy and France seem to favor telus\'s view, there is still uncertainty in Europe.
Huawei knows its denial is becoming more and more repeated.
It has vowed that it has never, and will never be a spy for the Chinese government.
The company says it follows the rule of law wherever it operates, blaming rogue employees for any suspicious bad behavior.
Yes, its founder was once a military engineer, but it insisted that it had no connection with the Communist Party.
However, no matter how many times it repeats, Huawei can\'t seem to get rid of the fact that it is a branch of the country, its high
The back door of tech equipment may allow the Chinese government to engage in espionage, or insert code that may shut down the entire network.
Mr. Richardson of Counterpoint suspected that the political farce and the resulting business uncertainty had surprised Huawei.
\"They may be a little naive . . . . . . All these political pranks are not used to, \"said the 27-year-old.
The veteran of the telecom industry.
\"It is impossible to prove that the old chestnut is negative.
They can say that we will never share information with the Chinese government until they are turned blue.
In the conference room in Shenzhen, the reporter sat opposite chairman Xu Jiayin.
Engineer, too.
On the table decorated with orchids and roses, it is written under a sign: \"Huawei warmly welcomes the distinguished guests of Canadian media.
\"Xu returned to the example of murder and the need to rely on the past to convince people of future behavior.
\"You can only explain that I have not killed anyone in the past, and I can guarantee that I will not kill people in the future because of my legacy, legacy, etc,\" he said . \".
\"For Huawei, this is probably the only thing we can do.
Xu said he appreciated the cyber security methods adopted by countries such as Germany, which test bugs across the system, not just a player\'s device.
He also praised Canadian universities, talented students and natural beauty.
He approved Huawei\'s first research center here and took his family to visit Banff and Lake Louise in Alta.
He also visited little gerwenhurst, Ontario.
The doctor, who brought modern medicine to rural China, is still reading national primary school textbooks.
However, it is difficult to overcome serious security concerns about Huawei devices and to understate the precious friendship between the two countries.
Despite the engineering reality of cyber security, Xu knows he needs to continue to defend his case. Are U. S.
The network is completely secure because Huawei has no footprints there, he asked. If Huawei is completely gone, he continues, is all the networks in the world safe?
But unfortunately, no matter how bold it is for Huawei, skeptics are not always swayed by technical arguments.
Email: ejackson @ nationalpost.
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