Huawei was targeted during Donald Trump's first presidency due to suspicions that it was essentially a state-owned company working at the behest of the Chinese Communist Party. The company's efforts to become integral to the global rollout of 5G technology led to a Western backlash, including sanctions and the house arrest of Ren Zhengfei's daughter, Meng Wanzhou.
Ren Zhengfei's background as a former military engineer and his experiences during the Cultural Revolution shaped his pragmatic and long-term strategic approach to founding Huawei. Starting the company in his 40s, he brought maturity and a sense of urgency, focusing on innovation and long-term goals rather than short-term gains.
Shenzhen's designation as a special economic zone in the 1980s provided a unique environment for Huawei's early success. The zone allowed for experimentation with capitalism, attracting foreign investment and fostering technological innovation. Huawei benefited from this environment, growing rapidly and establishing itself as a key player in the telecom industry.
Huawei's global expansion strategy initially involved working with rogue regimes and countries where Western companies were reluctant to operate. This pragmatic approach allowed Huawei to gain a foothold in the global market. However, this strategy eventually led to issues, such as sanctions violations in Iran, which resulted in significant challenges for the company.
The primary security concern surrounding Huawei's involvement in global telecom networks was the potential for the company to provide the Chinese government with a backdoor into these networks. This concern stemmed from the fear that Huawei could be compelled to assist in espionage activities, given its close ties to the Chinese state.
Huawei's release of a Chinese-made 5G smartphone in 2023 was significant because it demonstrated the company's ability to innovate and survive despite U.S. sanctions. The use of a domestically produced processor highlighted China's progress in developing its own technology and reducing reliance on foreign components.
Under a potential second Trump presidency, Huawei is likely to remain a key target in the U.S.-China tech rivalry. The company's investments in cutting-edge technologies like artificial intelligence, autonomous vehicles, and advanced robotics will continue to make it a focal point of policy discussions and potential sanctions.
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Among the casualties of Donald Trump’s trade war with China in his first presidency was the telecoms giant Huawei. Founded by former military engineer Ren Zhengfei, the company is a world-leading manufacturer of everything from telecoms equipment to smartphones.
But it fell foul of the Trump administration as it tried to become integral to the world’s rollout of 5G, leading to a backlash in the West and even the house arrest of Ren’s daughter. At the centre of the row is a suspicion that Huawei is essentially a state-owned company, working at the behest of the Chinese Communist Party.
So as Trump prepares to go back to the White House, this episode tries to get to the bottom of the telecoms giant. Is it an arm of the Chinese state? How has it found such world dominating success? Can it survive a second Trump presidency?
Cindy Yu speaks to Eva Dou, technology reporter for the Washington Post. Her new book is the House of Huawei: Inside the Secret World of China’s Most Powerful Company.