Huawei in push to ease concerns over national security
But industry insiders say decentralisation is meaningless and will not ease national security fears in the US or Australia.
While Huawei faces bipartisan political opposition in the US over its potential threat to national security, this is not mirrored in Australia, potentially opening the door to Huawei gaining access to the Australian government market with a change of government in September.
Asked if Huawei had plans to move its headquarters from Shenzhen, China, or list on an international stock exchange, a spokesman told IT Pro that the company "will move to decentralise its operations from China and spread the operations of the company across the world".
While those moves could help dissociate Huawei from its links to the Chinese government and ease some security concerns, the spokesman also referred to a recent news conference in New Zealand by CEO Ren Zhengfei who said the company had "no plans to list in the next five to 10 years".
Speaking through an interpreter, Mr Ren told reporters his company's relationship with the Chinese government was no different from that between companies from other countries and their governments.
He was confident no member of Huawei's staff would engage in spying, even if asked to by Chinese security agencies. The company has research and development centres in the US, Germany, Sweden, Ireland, India, Russia and Turkey. A public listing in the US would go some way to tackle fears it is controlled by, or spies for, the Chinese government.
Read the full story at smh.com.au/it-pro
Frequently Asked Questions about this Article…
Huawei has said it will spread its operations across the world rather than centralise them in Shenzhen, China. The company presents decentralisation as a step to distance itself from direct links to the Chinese government and to address concerns about suitability for government contracts.
Industry insiders quoted in the article say decentralisation is largely symbolic and unlikely to ease national security fears in the US. While the US has bipartisan political opposition to Huawei, Australia’s position is described as less aligned with that opposition, so decentralisation may not remove security concerns in either country.
The article notes that political opposition to Huawei in the US is bipartisan, but that stance is not mirrored in Australia. It suggests that a change of government in Australia (referenced as possible in September) could potentially create opportunities for Huawei to access the Australian government market.
When asked about moving its Shenzhen headquarters or listing internationally, a Huawei spokesman said the company will decentralise operations globally. However, CEO Ren Zhengfei has stated the company has 'no plans to list in the next five to 10 years,' so an international public listing is not expected in the near term.
Although the article notes that a US public listing could help address concerns about control by the Chinese government, CEO Ren Zhengfei has explicitly said Huawei has no plans to list in the next five to 10 years, so a US listing is not currently planned.
The article lists Huawei research and development centres in the US, Germany, Sweden, Ireland, India, Russia and Turkey, highlighting the company’s global R&D footprint.
Ren Zhengfei told reporters that Huawei’s relationship with the Chinese government is no different from that of companies from other countries with their governments. He also said he was confident no Huawei staff would engage in spying even if asked by Chinese security agencies.
No. According to the article, Huawei’s CEO has said the company has no plans to list in the next five to 10 years, so Huawei is not expected to be available as a publicly traded investment in the near term.
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