Since Nham Chinh Phi – a former engineer of the Chinese People's Army – founded in 1987, Huawei has become the world's leading provider of telecommunications equipment, with more than $ 100 billion in revenue, 180 thousand people worldwide. The brilliant success of this group has little contribution from the US market, where they have been accused of involving cyberattacks by Chinese hackers since the 2000s. Today, they stand in the middle The storm of the commercial war, and the concerns of the US government on cyber security.
Again, Huawei's trouble came early. As soon as they started competing with US corporations to gain router market share, other corporations began to denounce them unfair competition and steal technology secrets. Most notably, Cisco's 2003 accusation accused Huawei of stealing intellectual property. By 2008, 3Com canceled the deal with Huawei, fearing that the group was closely related to the Chinese government. In 2014, T-Mobile sued Huawei for … stealing a part of the robot arm they are developing.
In 2017, Donald Trump entered the White House, and the fight against Huawei suddenly became hot and fierce as we were followed. On May 15, Trump signed a decree to declare a state of emergency, essentially banning Huawei from accessing the supply chain of equipment and components of American corporations. This is Trump's strongest action ever. Less than a week later, Google withdrew Huawei's license to use Android OS. Other US corporations, or US allied nations, follow Google in turn.
President Trump's "Endgame" is still unclear. Will he want to put Huawei to death? Or is it just a blow for the US to have more opportunities on the table of trade negotiations with China? Only one thing is for sure, what is happening in 2019 is the consequence of nearly 2 decades Huawei set foot on the Western and American markets. Below is a brief summary of developments since Huawei opened a representative office in the US until now.
Huawei, then 14 years old, with a turnover of $ 3 billion opened representative offices in the US and UK.
January: Cisco Systems sues Huawei for copyright infringement, claiming that its source code appears in Huawei products. Later Cisco canceled the case.
November: Huawei started working with California-based company 3Com to produce and sell routers and switches for the telecommunications industry.
The idea that Huawei relates to the Chinese military appears after the Rand Corporation report, commissioned by the US Air Force. Rand Corporation discovered that many large Chinese IT corporations, including Huawei, are trying to keep the image of a private non-state corporation, but in fact "many electronics companies are average or closely related to the Chinese government's technological research efforts. ” In the report there is a paragraph: “Huawei keeps a close relationship with the Chinese military. The military is both a customer and helps Huawei develop and research products ”.
The report also predicts that Huawei's revenue from Chinese military partners falls between 1 and 6% of the group's total revenue. In the same year, Huawei's device sales in overseas markets surpassed domestic sales.
July: The FBI interviewed Ren Cheng Fei, Huawei's chairman of the company, for questioning Huawei's relationship with selling telecommunications equipment to Iran, a US-sanctioned economic country.
In the midst of concerns over Huawei's relationship with the Chinese People's Army, it became even hotter, an attempt to buy 16 percent of 3Com's shares poured into the river. Earlier, 3Com was the supplier of security software for the US military, besides many other contracts with the military.
February: At Mobile World Congress held in Barcelona, Spain, Huawei introduced its first smartphone running Android.
October: Huawei invites Matt Bross, a US employee to work for British Telecom, to become technology director to facilitate the US market. A Bloomberg article said Bross works in the basement at his home in St. Petersburg. Louis, Missouri. He once said: "I want to create an environment where we can trust each other."
November: Huawei leases a 9,300 square meter plot of land in Plano, Texas to open a sales and marketing office.
July: Motorola sued Huawei because the Chinese corporation set up technology spies to steal Motorola's business secrets, but then settled it well.
November: Taking security reasons, network operator Sprint of Huawei and ZTE from the list of bidders bidding for the telecom infrastructure upgrade package of the carrier, with hundreds of millions of dollars. Previously, Huawei had expected them to win the first contract to install telecommunications equipment in the United States.
February: The US Foreign Investment Commission (CFIUS) asked Huawei to sell startup assets 3Leaf Systems that had been bankrupt after being bought by Huawei. Huawei said that they did not announce the acquisition of 3Leaf Systems with CFIUS because they thought they only bought 1 part of this startup. The decision of the committee led Huawei's vice president, Ken Hu, to write a letter wishing the US to open an investigation to clear up the allegations and rumors that circulated around them.
April: Huawei opens a 18.5-thousand-square-foot complex in Silicon Valley for production research purposes.
October: A committee of the US parliament publishes a 52-page document, which gives a warning about security when using Huawei and ZTE's telecommunications network equipment. Investigators did not find evidence that Huawei worked illegally, but warned that: “Taken together, the Commission found that both companies could not provide evidence that satisfied the requirements of the investigation. This has absolutely nothing to do with illegal acts, but it does bring the committee to the conclusion below. The investigation shows that the use of Huawei and ZTE's telecommunications equipment for critical infrastructure systems will likely affect US domestic security. ”
two thousand and thirteen
Reuters reported that a Hong Kong-based company is trying to sell Hewlett Packard's computer equipment, an American computer company, to Iran's largest telecommunications network, violating US sanctions against the country. this. The above-mentioned "Hong Kong-based company" has a very close relationship with Huawei. Reuters article said Manh Van Chau, Nham Chinh Phi's daughter, a rising star in Huawei, has a seat on the board of Skycom Tech Co Ltd..
March: Based on documents released by Edward Snowden, a former NSA contract employee, the US is closely monitoring, even in the hands of finding information about Huawei. The New York Times reported that NSA has infiltrated Huawei's headquarters in Shenzhen, obtaining important information about the complex digital router and switch systems Huawei produces, along with it. is tracking calls and messages from many of Huawei's bosses.
September: T-Mobile sues Huawei, accusing them of stealing many technologies, including a robot arm from T-Mobile's headquarters. The arm is Tappy, a robot developed by T-Mobile to test smartphone durability in 2006. Huawei acknowledges that their two employees have voluntarily worked and fired them.
January: Talk at the World Economic Forum in Davos, Switzerland, President Nham completely denies accusations that Huawei is making eavesdropping and gathering information through its telecommunications equipment. exported to the Chinese government. President Nham even suggested that his former military officer and after founding Huawei to work with the Chinese army was just a coincidence.
September: Huawei and Google cooperate to produce Nexus 6p.
June: The US Department of Commerce sends a subpoena to Huawei to investigate whether the group is through Skycom Tech to sell US equipment to Iran, as well as investigate allegations that Huawei makes money by temporary import for re-export of US technology equipment to China and export to Cuba, DPRK, Syria and Sudan within the previous 5 years.
December: The US Treasury Department also participated in the investigation, sending itself to Huawei. The action took place shortly after the US banned technology companies from selling technology to ZTE because it accused the Chinese company of violating the Iranian embargo. US officials also published documents about ZTE detailing how they were able to do business with the Iranian side, with the same investment model as "a competitor company." The name of the rival company is not mentioned in the document, but the description is very similar to Huawei.
Seattle court jury announced that T-Mobile won the lawsuit against Huawei, arguing that the Chinese group took advantage of T-Mobile's business secret and unilaterally broke the contract to supply smartphone devices between Huawei and T. -Mobile, thereby protecting the business secrets of both sides. Huawei must pay $ 4.8 million to T-Mobile for breaking the contract.
January: AT&T, the second largest US carrier, is in the process of becoming the first carrier to sell Huawei smartphones in the US market. However, after managers and law lobbying against Huawei smartphones into the US, AT&T gave up its intention. Huawei's concerns regarding the provision of 5G telecommunications equipment are gradually becoming clear. A leaked document from the White House said US officials considered Huawei a strategic threat. Many US executives also want AT&T to stop cooperating completely with Huawei.
April: Huawei leaves several US employees out of work, including vice president of external relations William Plummer, a seasoned employee who worked for Nokia, and joined Huawei in 2010. Then in his memoir, Huidu, Plummer began describing stumbling blocks in both Huawei's PR and his position as a publicist in Huawei.
May: The Pentagon prohibits US troops from purchasing equipment from Huawei and ZTE, including smartphones for fear that the Chinese government can track US troops through the devices of the two companies.
August: The Domestic Security Trust Act is put into practice. It basically prohibits US government organizations from buying equipment and services from Huawei and ZTE.
October: US Senators Mark Warner and Marco Rubio call on Canadian Prime Minister Justin Trudeau to ban the use of Huawei's devices to deploy the 5G telecom network in Canada over fears that it could affect telecommunications systems America. In November, New Zealand banned Huawei from providing 5G infrastructure equipment, like Australia did earlier in early 2018.
December: Ms. Manh Van Chau was arrested in Canada on suspicion of violating the US embargo against Iran.
January: The United States prosecutes Huawei, accusing it of circumventing the law to sell equipment to Iran, at the same time trying to extradite Mrs Manh from Canada to the United States. The Polish side arrested a Huawei employee because he suspected of spying for the Chinese government.
March: Huawei contradicts the US government after the 2018 law passed, banning federal employees and organizations from using Huawei devices. They argue that the US has absolutely no evidence to prove that Huawei's use affects national security.
May 15: President Trump signs a decree to declare a state of emergency, banning operators from using "hostile nations" equipment. This decree does not mention Huawei, but its content is sufficient to ban US carriers from working with Huawei. Just a few days later, Google stopped cooperating with Huawei, withdrawing the license to use Android on Chinese corporate smartphones.
May 20: Trump's ban is relaxed. The US Department of Commerce said Huawei was allowed to purchase equipment and work with US corporations until August 19, 2019. But on the same day, Qualcomm, Intel announced that it would stop providing processor chips to Huawei, and Microsoft also said it had stopped selling software to Chinese corporations.