Huawei: Caught in the Whirlwind of the U.S.-China High-Tech War

Abstract

Founded in Shenzhen, China in 1987, Huawei was Ren Zhengfei’s startup that first served as a rural sales agent for network-based corporations. Now, Huawei identifies as a leader in the information and communications technology (ICT) sector that strives to create an increasingly connected, digitalized, and intelligent environment for all. Three core components of Huawei’s early success are open innovation, tactful international strategy, and customer-centricity. Huawei’s heavy investments in open innovation and R&D allow it to achieve extraordinary industry breakthroughs. By debuting in developing regions such as Africa first, Huawei builds the necessary skills needed to tackle developed regions such as Europe. Additionally, Huawei continuously adapts through customer feedback, thus providing superb customer service. Because of the escalating tensions between China and the United States since the Trump administration, the U.S. sees Huawei as part of the Chinese government’s agenda to extend its influence over the digital world. As such, the U.S. declared Huawei a national security hazard because of its potential to be used for espionage and sabotage. It also embarked on a global campaign to strongly advise its European allies to refrain from using Huawei’s services and products. Though European countries have responded on a continuum from avoidance to compliance, all took measures to strengthen their telecom policies explicitly or implicitly. In response to the accusations, Huawei has remained firm in denying ties to the state Communist Party, promising never to disclose private customer data to outside parties for any reason.