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Showing posts with label CEO Ren Zhengfei. Show all posts
Showing posts with label CEO Ren Zhengfei. Show all posts

Monday 20 May 2019

Huawei does not need US chips: CEO on Trump export ban

Huawei Technologies CEO Ren Zhengfei says Huawei would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei, because "we have already been preparing for this."

 
https://youtu.be/xcZS8QYky34
Chinese telecom giant will resist Washington pressure, Ren Zhengfei says

SHENZHEN, China -- Huawei Technologies' founder and chief executive blasted the Trump administration's decision to add his company to a government blacklist, insisting the Chinese telecom equipment maker has done nothing illegal.

"We have not done anything which violates the law," CEO Ren Zhengfei told Japanese media at company headquarters in Shenzhen on Saturday in his first interview since the  U.S. decision to restrict trade with Huawei.

Ren indicated that his company will continue developing its own chips to lessen the impact of the ban on its production. Ren said it would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei. "We have already been preparing for this," he said.

Huawei unit HiSilicon Technologies, which mainly designs core processor chips, has made similar allusions to plans for dealing with a potential disruption in supply. In a recent open letter, President Teresa He Tingbo wrote, "We actually have foreseen this day for many years, and we do have a backup plan."

Echoing his tougher tone in recent months, Ren said his company will not be dictated to by Washington. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," he said.

The U.S. deployed a similar ban against ZTE last year, pushing the Chinese telecom company to the brink of bankruptcy.

Ren said the impact of the U.S. ban on Huawei's business will be limited, and expressed confidence in its longer-term outlook. "It is expected that Huawei's growth may slow, but only slightly," said Ren, citing the potential of annual revenue growth undershooting 20%.

"Policies that threaten trading partners one after another rob companies of risk-taking attitudes, and the U.S. will lose credibility," said Ren. On the other hand, he sees U.S. President Donald Trump's trade policies providing the impetus for Chinese economic reforms. "I would even suggest that the environment will improve," said Ren.

Huawei's chief shot down the prospect of producing 5G equipment on American soil. "Even if the U.S. asks us to manufacture over there, we will not go," said Ren.

Huawei procures around $67 billion worth of components every year, with roughly $11 billion coming from U.S. suppliers. Huawei depends especially on American parts makers for semiconductors, and it is believed that the company could face problems going forward manufacturing smartphones and telecommunications equipment. - Nikkel Asian Review

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HiSilicon has released a series of chips geared for artificial intelligence under the name Kirin, which are currently used in some of Huawei's smartphones. The company has boasted that some Kirin chips can compete with the likes of Qualcomm Inc. and Nvidia Corp.

Huawei Unit Says It Can Help Ensure Chip Supply Without U.S. Tech, Amid Doubts - Caixin Global

 

 

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https://www.cnbc.com/video/2019/05/15/trump-signs-executive-order-targeting-huawei.html Key Points   President Donald Trump on Wedne.

 

 

Sunday 3 March 2019

Huawei gaining support despite US ban

Charm offensive: To restore its international reputation, Huawei’s top guns including the normally reclusive Ren began to grant interviews to foreign media to address concerns and talk about the group’s technology edge. — Huawei/AFP

CHINA’s Huawei, the world’s largest maker of telecom equipment and second largest manufacturer of smartphones, appears to have cleared some key hurdles with the might of its superfast 5G wireless technology amid relentless attacks by the United States.

The Trump administration has claimed that Huawei poses a potential national security threat. It is lobbying its allies to ban Huawei’s equipment, which Washington alleges could be used by the Chinese government for spying.

The US prosecutors have alleged that Huawei stole trade secrets and worked to skirt US sanctions on Iran. On Dec 1, with the help of Canada, it arrested Meng Wanzhou, chief financial officer of Huawei and daughter of the company founder. She faces extradition to the US to be charged for various offences.

Washington has repeatedly cited a Chinese law passed in 2017 allowing state intelligence agency to compel individual organisations to “provide necessary support, assistance and cooperation” as proof Huawei can’t be trusted.

US Secretary of State Mike Pompeo has warned allies against using Huawei technology, saying it would make it difficult for Washington to “partner alongside them”.

There is also constant reminder that Huawei’s 74-year-old founder Ren Zhengfei was a former engineer in China’s army and joined the Communist Party in 1978, before setting up Huawei in 1987.

In the past one year, the international environment looked hostile and global picture looked grim for Huawei, when New Zealand, Australia and Japan followed the US to block Huawei in 5G involvement in their countries, while European nations led by Britain and Germany placed Huawei under scrutiny.

It looked like this global leader in the fifth generation wireless techno­logy, which has operations in 170 countries, was to lose many potential customers in this non-stop anti-Huawei campaign.

The Chinese tech giant has vehemently denied all accusations by the US, saying these allegations are baseless and not proven. The Chinese government has also denied these claims.

Still popular: Attendees excited by the new Huawei Mate X foldable 5G smartphone revealed at the recent Mobile World Congress in Barcelona. — AP 
Still popular: Attendees excited by the new Huawei Mate X foldable 5G smartphone revealed at the recent Mobile World Congress in Barcelona. — AP

Public relations offensive

When taking a soft approach in response to US assault did not help to restore its international reputation, Huawei decided to go on an aggressive PR offensive recently.

Huawei’s top guns began to grant interviews to foreign media to address concerns and talk about the group’s technology edge.

In a recent interview with BBC, the founder of Huawei declared in Mandarin: “There’s no way the US can crush us. The world cannot leave us because we are more advanced. Even if they persuade more countries not to use us temporarily, we can always scale things down a bit.”

Indeed, Huawei has already built up such a strong lead in 5G techno­logy that it is practically irreplaceable, say analysts.

Huawei claims that its 5G techno­logy is at least one year ahead of its rivals, and many in the tech world agree.

The most successful private company in China is an important part of Beijing’s efforts to advance superfast 5G wireless networks.

Although under Chinese law, firms had to “co-operate with and collaborate in national intelligence work”, the serious-looking Ren told BBC that allowing spying was a risk he wouldn’t take.

“The Chinese government has already clearly said that it won’t install any backdoors. And we won’t install backdoors either. We’re not going to risk the disgust of our country and of our customers all over the world ... Our company will never undertake any spying activities. If we have any such actions, then I’ll shut the company down.”

He described the arrest of his daughter Meng Wanzhou as “politically motivated” amid the year-long US-China trade war.

The US is pressing criminal charges against Huawei and Meng, including money laundering, bank fraud and stealing trade secrets. Huawei has denied any wrongdoing.

Huawei has also used the four-day 2019 Mobile World Congress in Barcelona held last week as a platform to further its media blitz.

Huawei’s chairman Guo Ping expressed hope “independent sovereign states will make independent decisions based on their own understanding of the situation and will not just listen to someone else’s order.”

He added that Huawei must abide by Chinese law and laws of countries where it operates.

“Huawei will never, and dare not, and cannot violate any regulations,” he pledged.

Faced with so much scrutiny, it is no wonder that Huawei’s issue overshadowed the launch of new products and other tech giants at the global trade fair.

To the delight of Huawei, GSMA – a global lobby representing more than 750 network operators and the Mobile World Congress organiser – has appealed to European policymakers not to ban Huawei in Europe’s 5G networks.

It urged countries to take “a fact-based and risk-based approach” in a statement that the US wireless industry did not endorse.

No evidence of spying

Amid Huawei’s PR offensive, which includes aggressive advertising and sponsorship of events, some good news started trickling in for the Shenzhen-based company that hires 180,000 people worldwide.

On Feb 12, it was reported that cyber-security chiefs in the National Cyber Security Centre of Britain had concluded that “any risk posed by involving Huawei in UK telecoms projects can be managed”.

This report is seen as casting doubt on US claim of the security threat from Huawei.

On Feb 19, independent tech news portal The Register reported that Europeans could not find any evidence of Chinese spying.

“No concrete evidence has so far emerged that Huawei equipment contains a backdoor or any other means for China to snoop on,” said the portal’s writer Kieren McCarthy, based in Los Angeles.

And according to media reports, Germany’s Cabinet has rejected American efforts to impose a global ban on Huawei, after its own security services reported that it has failed to find any evidence of spying.

Both the UK and Germany are huge markets for Huawei. UK’s mobile firms – Vodafone, EE and Three – have been working with Huawei on developing their 5G networks.

Huawei is said to command about 40% share in Europe’s telecom network and equipment market. Hence, banning Huawei could be disruptive in this continent.

As a clear leader in 5G technology, ditching Huawei could also mean falling behind on crucial innovation for Europe.

Indeed, Deutsche Telecom is predicting a two-year delay if Huawei is banned from 5G involvement in Germany.

In India, media reports have suggested that Delhi might ignore US pressure after establishing closer ties with China.

Huawei was allowed to participate in 5G trials in India last December.

Ignoring the anti-Huawei campaign, Maxis announced last week it was collaborating with Huawei to accelerate 5G in Malaysia.

Maxis, in a statement, said it had signed a memorandum of understanding (MoU) with Huawei at the 2019 Mobile World Congress in Barcelona.

It highlighted that Huawei has signed over 30 commercial contracts and shipped more than 40,000 5G base stations across Europe, Asia and the Middle East.

The MoU states that both parties will work to speed up the rollout of 5G technology in the country, working on full-fledged trials with end-to-end systems and services.

“Maxis has long started its 5G journey, and we are already focusing on live trials, investments and evolving our network infrastructure to be ready for a future where smart solutions will be part of everyday life,” said Maxis CEO-designate Gokhan Ogut.

Perhaps, the last thing Huawei expected was a tweet by US President Donald Trump on Feb 21 amid the US-China trade talks: “I want 5G, and even 6G, technology in the US as soon as possible. It is far more powerful, faster and smarter than the current standard. American companies must step up their efforts, or get left behind.

“I want the US to win through competition, not by blocking out currently more advanced technologies. We must always be the leader in everything we do, especially when it comes to the very exciting world of technology!”

Does this mean Huawei would be allowed enter the US market? But can Trump’s tweet be taken seriously by Huawei and Beijing?

China’s dream can’t be crushed

In fact, the onslaught against Huawei is creating big problems for mobile operators as they start building the next generation of wireless networks this year.

This will not only hurt Huawei but also its suppliers in the US and other players in the world, if the US has its way.

As expected, the anti-Huawei campaign has fanned up patriotism among Chinese consumers and the first casualty is Apple.

Demand for Huawei’s devices surged amid local campaigns to ditch US phones. Huawei sold 30 million phones in China in the last three months of 2018, nearly three times as many as Apple, whose sales plunged 20%.

The US-Huawei showdown is also hurting trade and diplomatic relations between China and the close allies of US.

Exports of Canada, Australia and New Zealand to China are seeing negative impact from retaliations from Beijing and tourism linked to Chinese has also taken a hit.

But Huawei’s success in 5G technology is more than geopolitics and competitive price. It represents the rapid rise of China as a tech power, which the US could not stomach.

There is fear by the US that China will control the technologies of the future. Already, China is advanced in AI (artificial intelligence) and has just become the world’s largest solar power producer.

China is the world’s second largest economy. Many analysts believe it will overtake the US to become the biggest economy by 2030, with the momentum created by its 2025 Made-in-China vision and other economic plans.

Huawei last year overtook Apple as the second biggest supplier of smartphones. The company is expected to overtake Samsung by 2020.

In Barcelona, Huawei announced that it expected to ship between 250 million and 260 million smartphones in 2019, up 20%-30% from 2018.

Judging from recent developments, the anti-Huawei campaign may put a brake to the rapid growth of this tech company, but it certainty will not crush Huawei and China’s ambition to lead in technology globally.

By Ho Wah Foon The Star


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Tuesday 11 December 2018

Huawei CFO cites US$12 million homes in Vancouver and health issues in bail bid in Canada

https://youtu.be/_fFQ4oyaW6M

https://youtu.be/OJ6pdi05oj8 https://youtu.be/QgPN00prqYI https://youtu.be/0YTBCndEhho

Extradition case: A home owned by the family of Meng Wanzhou, who is being held on an extradition warrant, is pictured in Vancouver. — Reuters

A home owned by the family of Huawei CFO Meng Wanzhou, who is being held on an extradition warrant, is pictured in Vancouver, British Columbia.

For Huawei CFO, an Idyllic Summer Playground Turns Into a Prison


Vancouver plays a special role for Meng Wanzhou, as it does for many a wealthy Chinese -- a place to park some assets, educate your children, and just let your hair down from time to time.

Meng -- chief financial officer of Huawei Technologies Co., a telecom equipment giant present in more than 170 countries -- would carve a few weeks out of her punishing travel schedule every year for a break in the Canadian city.

She’d time it for the summer, when her children would be there and when the city’s crystal waters and craggy mountains would emerge from 10 months of rain to be bathed in long, golden days of sunshine. Just last August, she was seen strolling through a local park, snapping photos with her in-laws.

Her place of retreat has now become a jail. On Dec. 1, Meng stepped off a Cathay Pacific flight from Hong Kong around noon, and had planned a 12-hour stopover in Vancouver before heading on to Mexico. Instead, she was arrested by Canadian authorities and faces a U.S. extradition request on charges she conspired to defraud banks, including HSBC Bank Plc, so that they unwittingly cleared millions of dollars in transactions linked to Iran, in violation of U.S. sanctions.

This time, her stay looks to become an extended one -- extradition cases can sometimes take years. Whether she spends that time in a cell or under house arrest may hinge in part upon her ties to Vancouver and if they’re considered deep enough to stop her from fleeing.

Meng’s bail hearing resumes Monday at 10 a.m. local time. It’s expected to last the whole day as her defense team calls witnesses, including security companies, to testify on ways to address flight risk.

“In essence, Ms. Meng vacations for two weeks in Vancouver -- I say that is not a meaningful connection to this jurisdiction,” Crown attorney John Gibb-Carsley said Friday at the six-hour bail hearing in Vancouver as more than 100 spectators watched from a glass-walled gallery.

Meng -- wearing a dark green sweat suit, her posture impeccable -- watched from the back of the courtroom with her interpreter, occasionally taking notes on a sheet of paper. The 46-year-old has an incentive to flee home to China, which has no extradition treaty with the U.S., and she has the vast resources and connections to remain out of reach indefinitely, Gibb-Carsley said.

Canada has long been a favored destination for millionaire migrants, and Vancouver, especially, for the Asian ones. But increasingly that’s been stoking tensions in a city awash in Chinese cash, with wealthy part-time residents blamed for property prices that have made Vancouver the most unaffordable city in North America.

Meng, who first visited Vancouver 15 years ago, bought a six-bedroom house with her husband Xiaozong Liu in 2009 that’s now assessed at C$5.6 million ($4.2 million), according to property records and an affidavit by Meng read aloud in court. In 2016 they bought a second property, a brick-and-glass mansion set in a 21,000-square-foot lot assessed at C$16.3 million. Purchased with mortgages from HSBC, she’s offered to post the family’s equity in both as part of her bail.

Meng and Liu live in Shenzhen with their 10-year-old daughter. She also has three sons from a previous marriage, one of whom attends a prep school in Massachusetts. If granted bail, the family would move into one of their Vancouver homes and the son in Massachusetts would join them for Christmas, Meng’s lawyer told the court.


Meng WanzhouPhotographer: Dennis Zhe/Huawei Technologies Co.

Three of her four children have done part of their schooling in Vancouver, and they still spend weeks -- sometimes months -- in the city during summer. Meng, who also goes by the names Sabrina and Cathy, holds two passports, one from China and one from Hong Kong, and until 2009 also had Canadian permanent residency.


Her defense argues that those ties are substantive, and proposes she wait it out at one of her houses, under surveillance, tagged by a GPS device, and subject to unannounced police checks.

“She would not flee,” Meng’s defense lawyer David Martin responded. “She has a home here.”
Meng is the daughter of Huawei’s founder Ren Zhengfei, whose net worth was estimated at $3.2 billion, according to Gibb-Carsley. A million-dollar bail to that family is equivalent to a C$156 bail for an upper-middle class Canadian family with C$500,000 in assets, he said.

“I’m not saying that wealthy people can’t get bail,” said Gibb-Carsley. “But I’m saying in terms of magnitude to feel the pull of bail, we are in a different universe.” -


Sabrina Meng in her own words: Huawei CFO cites health problems in her bid to secure bail in Canada

 The US is seeking to extradite Meng in relation to Huawei’s alleged use of an unofficial subsidiary, Skycom, to skirt sanctions on Iran

Sabrina Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei Technologies, was arrested last Friday in Vancouver, Canada at the request of the US and accused of fraudulently representing the company to get around US and EU sanctions on Iran.

The US is seeking to extradite Meng in relation to Huawei’s alleged use of an unofficial subsidiary, Skycom, to skirt the sanctions, a lawyer representing the Canadian government said. Meng was arrested at Vancouver International Airport on December 1 as she changed planes and has been detained ever since.

Meng, a daughter of Huawei founder Ren Zhengfei, attended the British Columbia Supreme Court last Friday for a bail hearing, as the US seeks her extradition on fraud charges. The hearing ended without a decision and will continue on Monday.

Ahead of the continuation, here are some of the details of Meng’s personal affidavit filed with the Supreme Court:

  • Meng describes herself as a 46-year old Chinese citizen, holding a Hong Kong and Chinese passport, who lives in Shenzhen. 

  • Meng says her family have extensive ties to Canada, and Vancouver in particular.

  • Although Meng relinquished permanent resident status in Canada, she says her family have bought two homes in Vancouver.

  • Those two homes include a property bought in 2009 with her husband at 4005 28th Street, and another at 1603 Matthews Street in 2016.

  • Meng says she tries to spend at least 2-3 weeks in Vancouver every summer. Since 2012 her children, who attended school in Vancouver, no longer live there.

  • After being detained and interrogated at Vancouver International Airport on Friday, Meng says she was taken to Richmond General Hospital after feeling unwell due to severe hypertension, a condition she has struggled with “for years”.

  • Meng says she continues to feel unwell and is worried about her health “deteriorating” while she is incarcerated. Meng says she has had numerous health problems throughout her life, including thyroid cancer, for which she underwent surgery in 2011.

  • In May 2018, Meng says she had surgery to remedy health issues related to sleep apnoea and still has difficulty eating solid foods – which has caused her to modify her diet. She has received daily packages of medicines from her doctor for years to treat her ailments.

  • Meng points out she has no previous criminal record in China or anywhere else.

  • If she is granted bail, Meng offers to surrender both her passports, to live at her home at 4005 28th Street, to have her family live with her as permitted by Canada’s immigration laws, she is willing to pledge the equity of either or both her houses as security, or to make a cash deposit as directed by the court.

  • Meng says she would not breach any bail conditions because of the reputational damage it could do to Huawei, the company her father founded.

  • Finally, Meng says she is innocent of the allegations levelled against her and will contest the allegations at trial in the US if she is ultimately surrendered.

Case: In the matter of the Extradition Act, S.C. 1999, c. 18 as amended in the matter of the Attorney General of Canada on behalf of the United States of America and Wanzhou Meng, also known as “Cathy Meng” and “Sabrina Meng”.. -
 

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