It is widely known that Huawei’s founder Ren is an ex-People’s Liberation Army officer. While some view that fact alone as sufficient evidence to suspect a clear link between Huawei and the PLA, a larger question is who really "owns" Huawei. The company claims to be employee-owned.
A friend working for a Beijing semiconductor company explained to me over lunch: “Huawei hasn’t been able to go public because their financial book is such a mess.” We haven't been able to confirm that, but looming large is Huawei’s lack of transparency.
Since much of the evidence in the House Intelligence Committee's report on Huawei and ZTE is classified, it’s hard to blame the Chinese media for alleging U.S. protectionism. Still, it's not unreasonable for the U.S. to remain cautious. After all, as concerns mount about cyber warfare, why should you go out of your way to do business with companies who aren't even listed on the New York or London stock exchanges?
Wouldn't you rather work with a public company, especially on big telecom equipment deals for next-generation networks?
Huawei has hired a slick U.S. spokesman to defend its reputation, but going public would do more to solve some of Huawei's transparency problems.
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.