Sunday Times

Huawei makes nice as spying claims heat up

Chinese technology giant calls allegation­s ’baseless’

- LINDO XULU

CHINESE technology giant Huawei is turning on the charm in South Africa as part of its internatio­nal offensive to ease suspicions about its global expansion.

Huawei has managed to keep a remarkably low profile for a company whose products are used by more than a third of the world’s population.

Nonetheles­s, its executives have faced a barrage of questions about the company’s role in spying on clients on behalf of the Chinese government — a claim it vigorously denies.

This week Liu Wenjun, chief executive of Huawei South Africa, formally introduced himself to the media. He was appointed in June.

A trained engineer with experience of working in the Middle East, he told journalist­s he regarded South Africa and the rest of the continent as strategica­lly important markets for Huawei.

Huawei entered the South African market in 1999, and since then has steadily grown the business to the point where today it employs more than 1 000 people in the country, 60% of whom are locals.

It has also made rapid progress in the rest of Africa.

This year it has signed numerous deals, including a $750-million (about R7.6billion) project in Nigeria for the upgrading of the local mobile network.

Two weeks ago, it scored a $1.6-billion deal, equally split with rival ZTE, the world’s fifth-largest telecom equipment maker, to build mobile infrastruc­ture and introduce 4G broadband in Addis Ababa, Ethiopia.

It is already reaping dividends in South Africa: last week Business Report reported that IT distributo­r Mustek would increasing­ly source its products from devices manufactur­ed by Huawei over the next three to five years.

Yet suspicion about the company’s activities remains — especially when it comes to using its powerful mobile technology to spy on customers.

We have no relationsh­ip with China’s government

“Our line is very simple: these allegation­s have been baseless,” said Roland Sladek, Huawei’s vice-president for internatio­nal media affairs. “There simply hasn’t been any evidence of the company spying on our customers, be they on the continent or anywhere else in the world.”

Six weeks ago a former head of the US’s Central Intelligen­ce Agency, Michael Hayden, reportedly told an Australian newspaper that Huawei had “shared with the Chinese state intimate and extensive knowledge of the foreign telecommun­ications systems it is involved with”.

Last year the US House of Representa­tives urged US companies to stop doing business with Huawei because of concerns about spying.

Sladek denied rumours that the company had an overly intimate relationsh­ip with the Chinese government.

Ren Zhengfei, a former Chinese military officer, founder and CEO of the group, has kept a low profile.

The former member of the People’s Liberation Army — who was voted one of Time magazine’s 100 most influentia­l businessme­n in 2013 — has for 26 years declined to be interviewe­d by a journalist, increasing suspicions of a link with the Chinese government.

Sladek said: “On that accusation we’ve also been very clear: we have no relationsh­ip with the Chinese government other than us being a Chinese-based company and, as such, having to respect the laws of that country.”

Last week’s openness towards journalist­s is welcomed and is perhaps a sign of the group’s growing acceptance that, for any company, charming the media is a tool for dispelling myths.

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