Tag Archives: Huawei

Huawei is private company

By Xuefei Chen Axelsson

 Huawei is a private company and mainly relies on the market economic regulations from the beginning and that might be its secret of success.
Huawei's founder breaks years of silence to protest U.S. attacks. Photo: Bloomberg
Huawei’s founder breaks years of silence to protest U.S. attacks. Photo: Bloomberg

Ren Zhengfei, the billionaire founder of Huawei Technologies Co. Ltd., broke years of public silence to dismiss U.S. accusations the telecoms giant helps Beijing spy on Western governments.

While praising Donald Trump for his tax cuts, Ren also implicitly criticized the U.S. move in asking Canada to arrest his daughter for “scaring off potential investors.”

Ren denied suggestions that Huawei aids the Chinese government in espionage, saying it has no regular contact with Beijing, as his technology empire faces its biggest crisis in its three decades of existence. He said he’ll take a wait-and-see approach as to whether Trump will intervene on behalf of Huawei finance chief Meng Wanzhou. Meng — Ren’s eldest daughter — is in Canada facing extradition to the U.S. on allegations of helping defraud banks to avoid sanctions on Iran.

The emergence of the reclusive Ren, who last spoke with foreign media in 2015, underscores the depth of the attacks on Huawei, the largest symbol of China’s growing technological might. Meng’s arrest helped crystallize fears about its growing clout in areas from cutting-edge wireless infrastructure and semiconductors to consumer gadgets. Washington has since convinced a growing list of allies to blacklist Huawei networking equipment.

“I love my country, I support the Communist Party. But I will not do anything to harm the world,” the 74-year-old said in a roundtable briefing, only his third formal chat with foreign reporters. “I don’t see a close connection between my personal political beliefs and the businesses of Huawei.”

Ren said he would decline any request from Beijing for sensitive information on its clients and stressed the potential for cooperation with the U.S. and Trump’s administration. He said there is no law in China that requires a company to install a back door. “Huawei and I have not received any government requests to provide illicit information,” Ren said.

“Huawei is only a sesame seed in the trade conflict between China and the U.S.,” Ren said from the company’s campus in Shenzhen. “Trump is a great president. He dares to massively cut taxes, which will benefit business. But you have to treat well the companies and countries so that they are willing to invest in the U.S. and the government will be able to collect enough tax.”

However, he also pointed out the downside of the U.S. move in asking Canada to help arrest his daughter and extradite her.

“However, if a country or a company gets frightened, for example, if [you] detain some people, those potential investors will be scared away, and the positive [business] environment created by the tax cut will not bring expected results,” Ren said.

Ren, a legendary figure in Chinese business circles, is a uniquely placed voice in a conflict that will help define the global landscape in coming years.

A string of Huawei executives — all the way up to rotating chairman Ken Hu — have taken to media in recent weeks to deny allegations of espionage and challenge its accusers to provide proof of shady dealings. But the arrest in Poland last week of a sales executive accused of spying may have helped prompt the reclusive CEO to personally marshal Huawei’s global response. The employee in Poland was fired over the weekend.

Despite the potential impact on his business, Ren said he was confident Huawei’s revenue would grow to $125 billion in 2019 from more than $100 billion last year.

“Huawei is not a public company, we don’t need a beautiful earnings report,” Ren said. “If they don’t want Huawei to be in some markets, we can scale down a bit. As long as we can survive and feed our employees, there’s a future for us.”

Ren built a company that generates more sales than Alibaba Group Holding Ltd. and Tencent Holdings Ltd. combined. In 2018, Huawei overtook Apple Inc. in smartphone sales, a triumph that only served to burnish his tech credentials. His quotes adorn the walls of the food court at Huawei’s sprawling campus on the outskirts of the southern metropolis of Shenzhen, and employees still speak of him in reverent tones.

But it’s perhaps Huawei’s newest and splashiest campus in neighboring Dongguan that better encapsulates its ambitions. Overseen by Ren himself, the Chinese company has built a clutch of faux European towns modeled after the likes of Paris and Verona, complete with a lake, castles and bell towers. The complex is so massive employees have to get around by train — and it’s still expanding.

Yet Huawei has now become a target of scrutiny around the world. While the company is owned by its employees, the founder’s earlier career with the People’s Liberation Army has constantly bred suspicion that it poses a security threat, an accusation it has always denied. Still, several carriers are shunning its equipment over concerns the products may leave a backdoor for Chinese intelligence agencies.

Within China, the U.S.-led effort to exclude Huawei as the world prepares to adopt revolutionary fifth-generation wireless is tantamount to a national affront. The company remains a linchpin in Beijing’s effort to dominate future technologies by 2025 and a 2018 document from the Department of the Treasury showed that Huawei had about a 10th of the essential patents for 5G wireless networks. That would put it in a prime position to capitalize on the billions that will be spent rolling out the technology.

“I’m a strong supporter of the world building a unified technology standard,” Ren said.

Ren, who survived the great famine to found Huawei with four partners in 1987 with 21,000 yuan, said Huawei will continue to engage with governments so they can better understand his business.

He stepped back from daily operations in 2011 by introducing a unique rotation system that allows younger executives to run the company for about six months at a time. But he remained the face of the company on major occasions, such as when he accompanied President Xi Jinping to a Huawei office in the U.K. in 2015.

The company’s 2017 report shows he has a 1.4% stake, giving him a net worth of $2 billion, according to the Bloomberg Billionaires Index.

Over the past year the accusations have intensified, compounded by his daughter’s arrest as well as the blocking or limiting of Huawei gear in the U.S., AustraliaNew Zealand and other countries.

“Huawei firmly stands on the side of customers when it comes to cybersecurity and privacy,” Ren said.

Source: Bloomberg – Caixin

Svensk-kinesiskt samarbete kan digitalisera världens skogsindustri

Av Xuefei Chen Axelsson

STOCKHOLM, Dec. 30 (Greenpost) — Det svenska innovationsbolaget OTMETKA utvecklar system för att individuellt märka och spåra timmer i en automatisk process. Spårbarhet av timmer handlar inte bara om att säkerställa att virke avverkas lagligt och från rätt plats, utan också om en transaktion av data och därmed pengar. Nu vill OTMETKA bland annat med kinesisk hjälp digitalisera världens skogsindustri med sin smarta lösning.

– Morgondagens 4G/5G kopplar upp skördarna alltmer. Vet vi värdet på varje avverkad skogskubikmeter är det lätt att inse att digitaliseringen av skogen är en miljardindustri, säger Bengt Sörvik, CEO och grundare av OTMETKA, ett svenskt bolag med många patent inom skogsindustrin.

Varje år avverkas bara i Sverige skog för 35–40 miljarder SEK och under 2017 uppgick sågverksindustrin samlade exportvärde till 26,7 miljarder SEK. I princip all skog i Sverige är underkastad miljöcertifiering, FSC eller PEFC. Därmed finns också krav på att redovisa timrets ursprung, vilket idag sker med administrativa och ineffektiva pappersmetoder.

– Vi digitaliserar skogen ned på varje enskild stock och helt automatisk. Det är fel att dyrt insamlad produktionsinformation bara kastas bort efter att trädet är uppkapat till timmer, säger Sörvik.

Bygger på gammal beprövad teknik
OTMETKAs system för individmärkning av timmer bygger på en enkel, beprövad och äldre teknik med stämpelyxa. Det är en yxa som användes förr för att märka timmer då det flottades på älvarna till sågverken. Det var innan vägnät och lastbilstransporter var utbyggda.

Genom att skapa en matris av vridbara stansar i fasta lägen skapar OTMETKA en i princip oändlig nummerserie där tre saker kombineras: 1) positionen där trädet växte, 2) produktionsdata från skördarens dator och 3) en unik kod för varje enskild stock. Det patentskyddade systemet heter OtmetkaID och skapar globala, unika koder. När stocken kommer till sågverket läses den av med kamerateknik.

Global molnbaserad lösning för skogen
OTMETKAs affärsidé är att sälja teknik och information som licensierade tjänster via molnlösningar, som alla inom industrin enkelt kan koppla upp sig mot. Genom att erbjuda egna lösningar, men även partners plats i affärsmodellen, räknar bolaget med att bygga ett ekosystem av tjänster med ett övergripande mål om att effektivisera skogsbruket och använda råvaran ännu bättre.

– Då svenskt och finskt skogsbruk leder utvecklingen i världen och OTMETKAs metod kan appliceras över hela världen, räknar vi med att intresset kommer att växa snabbt. Vi tecknade nyligen ett samarbetsavtal med Salzburgs universitet i Österrike om att införa utökade biometriska analyser av stockens egenskaper ihop med OtmetkaID, säger Sörvik.

Huawei ny teknikpartner 
Just nu håller OTMETKA på att få sitt internationella genombrott. Bolaget har bland annat slutit avtal med franska globala certifieringsbolaget Bureau Veritas om att bygga en fullständig Blockchain-lösning från skogen via sågverksindustrin till slutkunden. Nyligen har också heminredningsjätten IKEA bjudit in OTMETKA till IKEA Bootcamp, för det ska hjälpa till att säkerställa råvarans ursprung.

Via kinesiska ambassaden har OTMETKA också träffat tekniktunga Huawei, som har flera nya tekniska lösningar inom skogsindustrin baserade på uppkopplad mobil internetteknik. Här hoppas Bengt Sörvik på ett samarbete för att ta fram nya produkter och tjänster:

– Huawei är en stark teknologi partner med entreprenörsanda och globala ambitioner. Vi på OTMETKA kan erbjuda Huawei våra djupa kunskaper inom skoglig artificiell intelligens, AI.

Tillbaka till rötterna i Kina
OTMETKA har också tagit de första kontakterna med Bank of China, via Counselor of Commerce Mr Han Xiaodong. Även kontakter med tre kinesiska skogsorganisationer – China Wood Protection Industry Association, China Timber & Wood Distribution Association och China National Forest Products Industry Association – är tagna.

– Det vore kul om våra olika tagna kinesiska kontakter kunde utvecklas till ett affärsmässigt och tekniskt samarbete. Min far föddes 1921 i Shanghai då min farfar arbetade på det svenska företaget Ekmanska Handelshuset i staden. Själv deltog jag i 1987 års Swedish Mount Everest-expedition från den norra sidan, en officiell expedition med inbjudan från de kinesiska myndigheterna. Vi klättrade nästan samma led som den stora kinesiska expeditionen gjorde 1963, säger  Sörvik.

So many accidents, do you think Americans are stupid?

By Xuefei Chen Axelsson

Since Iraq war I decided not to speak about politics because the real politics was power politics. But politics often comes to you and you have to think a little bit.

Recently Huawei’s Meng Wanzhou was arrested by Canadian police.  It happened just before or after Trump and Xi meeting. Some people said it was a coincidence.

If I remember clearly, when Xi visited Trump in the latter’s home garden in Florida, just before they began to talk, Trump told Xi that he had just sent a very advanced bomb to Syria.

And Xi was like when Liu Bei met Cao Cao. When Cao Cao said to  Liu Bei, do you know who are the heros in this world? Liu Bei said I don’t know. Cao Cao said, only you and I are heros in this world. Liu Bei was shocked while outside there was a thunderstorm.  Liu said oh, I am sorry, I was afraid of the thunderstorm.

Some people think it was just an accident that Trump wanted to give this gift to Xi. And Xi said oh, Trump, I understand your meaning.  Then they began to talk again.

Long time ago in 1999 when Clinton administration was in power, America went to Kosovo and bombed Yugoslavia. By the way they also bombed the Chinese Embassy in Belgrade. Three people were killed.  And they were two journalists and one family member.  Afterwards the American side said it was a mistake. They used a wrong map.

In 2002 when I visited Las Vigas, I met a group of American men and they said to me it was an accident, right? I said, yes, it is an accident.

But Chinese wisdom is that anything cannot repeat three times.  If it repeats three times or more, it means something serious. So I like to ask that, Are Americans so stupid to have such many accidents?

China Focus: New engines to bolster growth in next 5 years

   BEIJING, Dec. 8 (Xinhua) — To ensure a medium-high level of economic growth for the next five years, China has moved to foster new growth engines as old ones lose steam.

China’s exports dropped by 3.7 percent in November, the fifth straight month of decline, to 1.25 trillion yuan (195 million U.S. dollars), customs data showed Tuesday.

In recent years, old growth engines, including exports and investment, lost momentum partly due to weak demand at home and overseas. The country’s quarterly GDP growth slowed to a six-year low of 6.9 percent in the third quarter of this year.

In the next five years, the country’s annual growth rate should be no less than 6.5 percent to realize the goal of doubling the GDP and per capita income of 2010 by 2020.

To attain that goal, the government must cultivate new growth engines to bolster growth in the next five years.


As traditional industries including steel, coal and cement sectors are facing excessive capacity, China is moving to tap the potential of new industries with bright prospects.

A proposal for formulating the country’s 13th five-year plan unveiled last month said that China will step up researches on core technology concerning the new generation of telecommunications, new energy, new material and aviation, and support the development of new industries, including energy conservation, biotechnology and information technology sectors.

In Changzhou, a city in eastern China’s Jiangsu Province, there are more than 50 companies producing graphene, a new material that widely used in high-end equipment manufacturing, forming a national level production base for the material. Products made by Changzhou Tanyuan Technology Co. are used in smartphones. The company’s sales have risen from 6 million yuan to more than 200 million yuan in only three years.

Qi Chengyuan, head of the high-tech division of the National Development and Reform Commission (NDRC), said China will turn new strategic industries into major driving forces for economic growth in the next five years.

The country should form five new pillar industries that each have a potential of becoming a 10 trillion yuan industry, including information technology, bioindustry, green industry, high-end equipment and material, as well as the creative industry, Qi said.


New impetus must also come from the government’s emphasis on mass entrepreneurship and innovation.

In the first three quarters, China’s newly registered companies rose 19.3 percent to 3.16 million, as the country pushed for easier registration to promote innovation.

Innovation is the most important impetus for China’s growth, according to the proposal for formulating the 13th five-year plan.

A good example is the strong growth in Shenzhen, a national demonstration zone for independent innovation. In the first 10 months, the proportion of R&D investment in Shenzhen’s regional GDP was more than 4 percent, nearly doubles the national average.

The city’s economic growth stood at 8.7 percent in the first three quarters, higher than the country’s growth of 6.9 percent in the same period.

imagesThe Shenzhen-based Huawei Technologies Co., Ltd. has set up 16 overseas R&D institutions and owns a total of 76,687 patents, said its CEO Ren Zhengfei.

The company realized a sales volume of 288 billion yuan last year. Ren forecast that the company will more than double that sales figure by 2019 on the back of constant innovation.

Song Weiguo, researcher with the Chinese Academy of Science and Technology for Development, said that technological innovation will provide greater impetus for growth in the next five years.


Structural reforms on the supply side will lend more steam to sustainable growth, President Xi Jinping said last month at a meeting of the Central Leading Group for Financial and Economic Affairs.

Xu Lin, head of the NDRC’s planning division, said reforms on the supply side, which means sustainable growth instead of short-term demand management, is necessary for cultivating new growth impetus.

An important aspect of supply side reforms is government efforts to streamlining administrative approvals and delegating power to lower levels.

From early 2013 to the end of September 2015, the central government has canceled or delegated 586 kinds of administrative approval.

In the economic and technological development zone of Nanning, Guangxi Zhuang Autonomous Region, the bureau in charge of administrative approvals cut the red tape and reduced the time needed for getting an approval from more than 300 days to 20 days.

On the supply side, China should maintain structural tax reductions to boost the service and advanced manufacturing sectors and support small enterprises, and push forward entrepreneurship and innovation, Premier Li Keqiang said earlier this month.

China will keep cutting red tape to foster emerging industries and speed up the overhaul in traditional industries to improve efficiency, Li said.

With new impetus from China’s reform pushes, the country will be able to realize an average annual growth of 6.5 percent in the next five years, said Yu Bin, researcher with the Development Research Center of the State Council. Enditem



Chinese telecom giant eyes age of “superphone”

SINGAPORE, Nov. 12 (Greenpost) — China’s telecommunication giant Huawei said here Thursday that the next-generation mobile phone, which is called “superphone”, will emerge around 2020 and open up a new era in which physical and digital realities are fused.
Shao Yang, President of Strategy Marketing, Huawei Consumer Business Group (BG), shared Huawei’s vision of how the “superphone” will take mankind closer to a world where the physical and digital realities will be further integrated.
At the Huawei Innovation Day Asia, Shao said the advent of the “superphone” will eventually build a new world of all things digital, all things connected, seamless intelligence integration, and merging intelligence.
“Through evolution and adaptation, the ‘superphone’ will be more intelligent, enhancing and even transforming our perceptions, enabling humans to go further than ever before.”
Shao said that with the evolvement and adaptation of the “superphone”, the physical world will be reconstructed through digitalization.
To embrace this new era, Huawei has entered into a number of strategic partnerships with major automobile brands, including Volkswagen, Mercedes-Benz and Audi, and has been pursuing the development of cloud services, according to Shao.
The company has also established a partnership with the University of Manchester to explore ways of using graphene’s applications in consumer electronics and mobile communication devices, said Shao.  Enditem