What You Didn’t Know About Huawei!


From problems with intellectual property to
suspicions of spying, today we look at What You Didn’t Know About Huawei . Number 9. Corporate Chronicle
Spawning out of Shenzhen in the Guangdong province of South China, the multinational
tech giant known as Huawei Technologies was founded in 1987. It began with manufacturing phone switches
before pursuing further products in the telecommunication market. The company eventually expanded to build telecommunication
networks, manufacture communication devices, and provide equipment, consulting, and operational
services for businesses outside of China. Huawei was founded by former deputy director
of the People’s Liberation Army engineering corp, Ren Zhengfei , the company’s beginnings
were based in reverse engineering foreign technologies to give China less reliance on
imported technology! Number 8. Expanding Horizons
The first decade of Huawei ‘s business went relatively well as the company had staff of
600 in their research and development department by 1990 and grew from the ground up, serving
hotels and new enterprises in rural regions and small cities throughout China. Then in 1993, they caught their first break
with the introduction of the most powerful telephone switch in the country at the time. But things really started to pick up for Huawei
when, in 1996, the Beijing government championed the company as a domestic technology leader,
and began restricting access to foreign tech rivals in their favor. At the same time, Huawei would start looking
at opportunities abroad, first working with Hong Kong company Hutchison Whampoa in 1997,
then establishing a research and development center in Bangalore in 1999. As the telecommunication services company
continued to extend its reach, it would eventually surpass its own domestic sales numbers with
revenue from foreign contracts in 2005, establishing itself as an international, multi-billion
dollar powerhouse. Huawei was listed among the Global Fortune
500 for the first time in 2010 on the basis of more than 21 billion dollars in annual
sales. Number 7. Intellectual Accusations
Though the business may have risen to prominence with great success and profits, Huawei has
faced a number of obstacles, especially in the realm of intellectual property. In 2003, Cisco Systems, a Silicon Valley-based
telecommunications hardware and equipment manufacturer and rival to Huawei , sued their
Chinese rival for allegedly copying their source code. The case was dropped after Huawei removed
the code, manuals, and interfaces they were accused of taking from Cisco, but the aftermath
found Huawei playing the victim. The Chinese company, along with local media,
framed the legal dispute as if Cisco was a “bullying multi-national corporation” according
to Cisco’s Corporate Counsel. “The damage to Cisco’s reputation in China
outweighed any benefit achieved through the lawsuit,” and so, both companies deemed the
legal settlement to be somewhat of a win. This was only the start, though, as a 2010
lawsuit from Motorola named Huawei as a co-defendant in a trial surrounding allegedly stolen trade
secrets, though the Chinese company would flip it around and actually receive a sum
when settling. Then in 2014, T-Mobile would file lawsuits
against Huawei under the claim that they had stolen technology from their Washington state
headquarters. The tech in question was actually T-Mobile’s
smartphone testing robot, Tappy, and the court proceedings revolving around this situation
weren’t resolved until 2017 when Huawei was court-ordered to pay 4.8 million dollars in
damages to T-Mobile. Number 6. Espionage Concerns
Recently, United States politicians and officials have voiced suspicions that devices made by
Huawei pose security concerns due to their relation to the Chinese government and People’s
Liberation Army, drawing on the history of its founder and public appreciation shown
for the company by the government. To protect against this fear, the Committee
on Foreign Investment in the U.S. has kept a close eye on Huawei ‘s various deals with
American companies, watching as deals with companies like Bain Capital, Sprint Nextel
and 3Leaf Systems all fell through. America isn’t alone with these worries though,
with countries like the United Kingdom, India, Canada and Australia all finding issues with
the tech company. Each of these nations has blocked Huawei employees,
both current and past, from interacting with companies within their borders, citing suspicion
of espionage as their chief motivation. Thorough investigations by the U.S. government,
as well as other national governments, have claimed to find evidence of Huawei leaking
information with backdoors in their networking equipment. The Chinese telecommunication firm has repeatedly
denied such accusations, but this didn’t stop any of these nations from gradually ceasing
business relations over the last decade. Number 5. Foreign Restrictions
In the past two years, Huawei has come under the scrutiny of the US Federal Government
again, but not just for potential espionage. Reports of possible economic sanction violations
by the Chinese tech company were brought to the US Justice Department in 2018. They banned together with the Treasury Department’s
Office of Foreign Assets Control and the Department of Commerce to investigate potential dealings
with embargoed nations like Venezuela, Iran, Syria, and North Korea. In addition to these alleged affronts, some
of their other cross-border transgressions include: supplying optic fibre equipment to
Iraq during Saddam Hussein’s reign and most recently, reports from Reuters connect Huawei
to Syria. They’ve even been accused of aiding a notorious
extremist group before an Indian federal investigation reported they found no connection between
the company and the faction, though the US remained suspicious. Huawei ‘s greatest transgressions, though,
seem to come from their assistance in various surveillance programs. Said to be one of the key suppliers of information
to China’s Great Firewall of China internet censorship initiative, the telecommunications
company has also been suspected of selling technology to Russian manufacturer Bulat and
Iran. These dealings have landed the company in
hot water, especially one employee in particular. Number 4. Executive Violation
While founder Ren Zhengfei has been the mind behind much of Huawei ‘s success, it has been
his eldest daughter, Meng Wanzhou , that has filled the role of the company’s face. Professional and proficient in her role, Meng
[mayng] has led the tech business at company events, when announcing financial results
to reporters, and in launching partnerships throughout the Western world. Among these jobs, though, she has also served
on the board of Huawei ‘s partner company Skycom Tech, a business which Canadian officials
have found to have done business with Iran directly. This poses a major problem, as the United
States has economic sanctions against Iran, and through her work, some financial institutions
have been duped into violating them. Because of this, while changing flights in
Vancouver, Meng [mayng]was arrested by Canadian officials on December first of 2018 at the
request of the U.S. federal government. The 46-year-old finance chief was brought
in specifically on allegations of “conspiracy to defraud multiple international institutions.” Meng [mayng] was granted bail 10 days later
for a whopping fee of 10 million Canadian dollars, but required electronic home surveillance
and had to turn over all of her passports as a result. As she remained in Canada, American federal
prosecutors proceeded to formally indict Meng [mayng] on thirteen counts of bank and wire
fraud, misappropriation of trade secrets, and obstruction of justice. The Canadian Department of Justice waited
until March 1, their deadline, to decide in favor of extraditing Meng [mayng] to the US. However, her attorneys have since filed lawsuits
with the Canadian government, citing flaws in the manner in which she was arrested and
extradited, and claiming her arrest to be an abuse of power and process. Her current case is now pending and set to
be stretched out with a court appearance scheduled for September 2019 and extradition hearings
scheduled for January 2020 with a predicted end date of October that year. Number 3. Marketing & Mistreatment
In addition to such egregious offenses as those listed earlier in this video, Huawei
has also run into their share of troubles regarding basic customer service and marketing. Multiple times in the last few years, the
telecom company has promoted its exceptional new camera capabilities, often providing photos
in promotional material to customers as evidence of the supposed upgrade. However, on a surprising amount of occasions,
these photos have actually been the product of DSLR cameras, or even stock footage, essentially
misrepresenting the smartphone cameras true potential. In one instance, the Huawei P30 was said to
be equipped with a new AI feature meant to take photos of the moon, claiming the camera
can “adequately capture the beauty of the moon along with fine details like moonbeams
and shadows.” It was revealed later, however, that the feature
actually just uses existing photos of the moon and inserts them into the photo. Huawei has also been known to make transactions
difficult for some clients, with a 2007 U.S. Army Strategic Studies Institute report telling
of customers receiving full paid trips to China and being gifted with presents, all
of which would then be used to extort the client. Employees aren’t even immune from their transgressions,
with Huawei being accused of treating Chinese workers better than Indian staff at their
Bangalore facility, of abusing a loophole to route labor laws, and of providing work
conditions that led to the passing of one 25-year-old employee in 2006. Number 2. U.S. Ban
Due to all of the issues the United States has had with Huawei in the past decade or
prior, the U.S. Government has taken steps to halt Huawei
from doing business with Americans. First, in 2018, President Donald Trump signed
an Act that barred the government from purchasing any hardware from Huawei . In response, Huawei
sued the American government under the claim that they had “failed to produce any evidence
to support its restrictions”, citing a lack of due process as well. However, this didn’t slow the campaign against
the company with President Trump signing an Executive Order in May of 2019 to give the
government power to halt any transactions with foreign adversaries when it comes to
telecom tech. U.S. companies were barred from doing business
with the Chinese business, and almost immediately entities like Google, Intel, and Qualcomm
ceased business with Huawei . Number 1. Google’s Concerns
This cease of business has Google worried, as the inability to provide security provisions
that were once standard with these products would allow for much more dangerous devices
to enter global circulation. Without Google’s Play Protect software and
the oversight of the Google Play Store, users all over will run the risk of having their
device hacked thanks to malware and viruses. From there, all it takes is someone from the
United States to send sensitive information to one of these phones unwittingly, and a
whole new can of worms is opened. Google continues to attempt the argument,
but for now, Huawei isn’t getting any access to assistance from U.S. businesses.

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