Huawei: A Case Study of When Profit Sharing Works

Huawei: A Case Study of When Profit Sharing Works

One example that’s less well known in the West is Chinese telecom giant Huawei, a private company owned by its employees. Founded in 1987 by Ren Zhengfei, today it employs about 170,000 staff, including more than 40,000 non-Chinese (75% of employees outside China are local hires), and serves more than 3 billion customers worldwide. It is the only Chinese company that receives more sales revenue from markets outside China (67%) than from inside it. (Editor’s note: It’s worth noting that the U.S. isn’t one of those markets. Some U.S. lawmakers consider the company a security threat. For its part, Huawei’s internal policy is to use U.S. law as the guiding law in their international business.)

U.S. firms can work with Huawei on 5G and other standards. Here’s what it means

U.S. firms can work with Huawei on 5G and other standards. Here’s what it means

“It is exceptionally important for U.S. companies to be at the table. Being forced to cede their seat at the table to the likes of Huawei no less, was in nobody’s interest, except the Chinese,” Naomi Wilson, senior director of policy for Asia at ITI, told CNBC. “The last thing we want to see is unintended consequence that negatively affects U.S. companies’ competitiveness.”

Related: Chinese standards going global an unavoidable trend

US to Allow American Companies to Work With Huawei on 5G Standards

US to Allow American Companies to Work With Huawei on 5G Standards

The United States Commerce Department signed a rule change that will allow US-based companies to work with Chinese telecommunication giant Huawei to develop standards for 5G networks. According to Reuters, the ruling will be published in the Federal Register on Tuesday.

US Commerce Secretary Wilbur Ross, an appointee of US President Donald Trump, confirmed the move in a statement, declaring that the White House would  “not cede leadership in global innovation”.

HUAWEI GETS A WAY OUT – U.S. NEW LAWS WILL BE COMPLETELY INEFFECTIVE

The U.S. Department of Commerce recently announced that all manufacturers (worldwide) that use American technology must obtain a license before producing chips for Huawei. The target of this new law is obviously TSMC. The Taiwanese chipmaker is the “brain” behind Huawei’s Kirin chips. However, TSMC uses American technology to make Kirin’s SoCs. This means that TSMC will need a license from the US before making Huawei’s chips. Of course, it will not get the license.

HUAWEI GETS A WAY OUT – U.S. NEW LAWS WILL BE COMPLETELY INEFFECTIVE