TOKYO -- Beijing is crying foul in the aftermath of a congressional report that virtually places China’s Huawei and ZTE on a blacklist.
State-controlled China Daily has led the charge with stories like “Huawei, ZTE hit back at ‘biased’ US market report,” “Protectionism behind groundless US accusation,” and “China ‘strongly opposes’ US report on telecom firms.” A Commerce Ministry official is quoted in one story denouncing the U.S. report as “subjective guesswork” filled with “untrue evidence.”
The outcry from China should surprise no one. After all, Huawei is the pride of China.
[Get a 10% discount on ARM TechCon 2012 conference passes by using promo code EDIT. Click here to learn about the show and register.]
The Shenzhen-based telecom equipment maker was founded in 1987 by entrepreneur Zhenghei Ren, initially serving as a sales agent for PBX switches made by a Hong Kong company. Unlike other stodgy state-owned enterprises in China, Huawei has remained nimble and aggressive, and has doggedly pursued its own global expansion strategy. Huawei has partnerships and R&D centers in the U.S., the U.K., Germany, Sweden, India, Russia and Turkey.
During an early 2000 press tour, I can recall visiting the Invest in Sweden Agency in Stockholm and hearing Swedish officials talking about a much anticipated visit by Huawei..
At the time, I didn't know Huawei. Swallowing my pride, I asked the Swedes, “How do you spell Huawei?” One shot me a look, incredulous that I didn't know the rising Chinese telecom company. I certainly deserved that look. (Huawei eventually opened an R&D center in Stockholm.)
Since then, I've watched Huawei growth with amazement as it captured 20 percent of the global market for telecom equipment. Huawei is considered a Cinderella story in China, and I agree.
I find it curious that Huawei, a major player in the global telecom equipment market, remains as a private company.
Going public or not does not matter. Its just a matter of time. The Chinese are very good in the waiting game and have lots financial backing via their government...that will last them till the negative US impression fades. It the end it will boil down to their low cost products vs. expensive American brands of the same performance. The price difference of these products will be the deal breaker.
You are correct. ZTE did an IPO on the Shenzhen in 1997 and another on the Hong Kong in December, 2004. My argument for going public won't hold for ZTE.
However, the key focus of the U.S. Congressional intelligence report is still on Huawei.
I am not sure who is on the side of free market in this case. We have Cisco, HP, Intel, Microsoft, all over there. Their kimono is wide open front and back.
We can count on them develop nothing of their own. But what if they start to shut Cisco there when they got Huawei, shut Dell there when they get Lenovo, and so on?
They are shutting Toyota now, gave the business to Ford. We will see how that plays out.
It at least gives you some time to sell Cisco stocks.
Probably not. But at least, that's a start. Don't underestimate the power of being a public company. At least that will require the company to publicly disclose certain basic information, even though it's not perfect.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.