Huawei using setbacks as motivation to be No 1
Huawei rotating chairman Guo Ping has told staff a recent backlash from Western countries against the Chinese telecommunications equipment giant will be an encouragement for the company to become a global leader – not a deterrent.
In a statement by Ping to staff last week, he warned of greater uncertainty in the macro business environment as the dynamic between world powers became ‘‘more intense’’ after a difficult year for the China-based manufacturer.
‘‘We must not be discouraged by malicious incidents or temporary setbacks, and must remain determined to achieve global leadership,’’ he said.
‘‘Setbacks will only make us more courageous, and incredibly unfair treatment will drive us to become the world’s number one.’’
The last 12 months have seen several countries block Huawei from participating in multibillion-dollar high-speed mobile network 5G builds, with Australia the first to announce an official ban in August on the grounds of security concerns. The United States has an unofficial stance against Huawei, with New Zealand recently imposing its own ban.
The UK has started to publicly express concerns about Huawei.
In early December, Huawei’s global finance chief Sabrina Meng Wanzhou was arrested in Canada on US charges that the company had violated trade sanctions with Iran.
Ping said Huawei needed to step up its efforts to establish itself as a global presence, and engage with media outlets, governments, industry standards bodies, partners and suppliers, while understanding different value systems and using ‘‘a more global mindset to resolve the issues we encounter in Western countries’’.
‘‘We will remain calm and composed in the face of adversity, and use the certainty of legal compliance to deal with the uncertainty of international politics.’’
He said Huawei was ‘‘ahead of others’’ in wireless, optical, data communications and smart devices, and ready to take the lead in artificial intelligence, big data and cloud technology.
‘‘For 5G markets that choose to not work with Huawei – they will be like an NBA game without star players. The game will go on, but with less deftness, flair, and expertise,’’ he said.
Huawei now has customers in
170 countries and regions, has 26 commercial contracts for 5G with global carriers, and has shipped
10,000 5G base stations and 200 million smartphones. In 2018, sales revenue is expected to jump
21 per cent over the year to
US$108.5 billion (NZ$162 billion). ‘‘Our business performance remains strong, and this is by far the most direct form of validation that we can receive from our customers. It is also our best response to negative conjecture and market restrictions,’’ Ping said.
He said 2019 would be a year focused on retaining products that were competitive and phasing out those that were not. ‘‘If we can develop the simplest possible network architecture, make our transaction models as simple as possible, ensure the highest level of cyber security and privacy protection, produce the best products, and provide the best services, no market can keep us away.’’