Along with Huawei’s success has come suspicion about the company’s ties to China’s government, its willingness to overlook U.S. sanctions and the security of its systems.
By Jason Abbruzzese
The arrest of a Chinese tech executive in Canada on Saturday was the most recent and public chapter of an ongoing battle between the U.S. government and one of the world’s biggest tech companies — Huawei.
The arrest, which came on U.S. extradition charges, featured a heightened level of intrigue due to the profile of the person arrested: Meng Wanzhou, Huawei’s chief financial officer and daughter of Huawei’s secretive founder, Ren Zhengfei, who is one of the most powerful businessmen in China. The arrest came amid reports that Huawei had been sending U.S. technology to Iran in violation of U.S. sanctions against the country.
Huawei is not a household name in the U.S., but the company has emerged as one of the largest tech firms in the world in the past decade thanks to its success in producing telecommunications equipment including cell towers and equipment for next-generation 5G wireless networks. Huawei is also second in the global smartphone market, having surpassed Apple earlier in 2018.
“Huawei is effectively an arm of the Chinese government, and it’s more than capable of stealing information from U.S. officials by hacking its devices,” Sen. Tom Cotton, R-Ark., said in February when he introduced legislation to block the U.S. government from buying telecom equipment from Huawei or ZTE, another Chinese hardware maker. President Donald Trump signed the the bill in August.
The arrest of the Huawei executive is a BIG deal in China and is probably being underplayed in the US news cycle. Equivalent of an Apple or Facebook exec being arrested in China. https://www.scmp.com/tech/article/2176655/detained-huawei-cfo-sabrina-meng-wanzhou-told-staff-one-may-accept-risk …
Ren, a former Chinese army engineer, started Huawei in 1987 and found initial success making telephone equipment. Huawei’s expansion into telecommunications technology in the 1990s would fuel the company’s international expansion — and put it on the radar of U.S. security experts. Meng has been seen as the successor to Huawei.
In 2017, Fortune magazine ranked Huawei as the seventh-biggest tech company in the world by revenue, with more than $89 billion. The company has more than 180,000 employees.
Despite its size and global reach, only 38 percent of Americans said they had heard of Huawei, according to the survey company Morning Consult. The company’s name has also been something of a mystery for some in the West who wonder how to pronounce it. The company even made a humorous video for the U.K. about how to pronounce Huawei.
China’s rise as a global power has coincided with the emergence of the internet as a major av