U.S. can't compete with Huawei says company executive

U.S. can't compete with Huawei says company executive
After years of being told that it was a national security threat by U.S. lawmakers worried that the communist Chinese government will force the company to gather intelligence for it, Huawei has had enough. Unverified talk that its products contain back doors ready to be a conduit for secret information sent to Beijing, and watching as U.S. officials try to get allies not to use its 5G networking equipment has Huawei executives ready to fight. Rotating Chairman Guo Ping told CNBC today that the country is dragging its name and reputation through the mud because the U.S. can't compete with the company.

If Guo is trying to win over U.S. officials, he is going about it the wrong way. The executive said that the U.S. has a "loser's attitude," which to President Donald Trump will be like a red flag waved in front of a bull. Huawei has already ruffled some feathers in the administration by suing the U.S. over a law that bars the country's governmental agencies from using Huawei equipment. The chairman admits that the actions taken by the U.S. have "troubled" the company, but says that it is up to customers to decide whether or not to buy its phones and networking equipment.

Despite not having a partnership with a major U.S. carrier, Huawei managed to ship over 200 million phones last year, placing it third globally after Samsung and Apple. This year, the company expects to surpass both of those rivals to take the top spot. Earlier today, we told you that in 2018 Huawei generated over $100 billion in revenue for the first time, led by the 45.1% gain in sales for the division that manufacturers smartphones. Its networking equipment business suffered a year-over-year decline, possibly because of the scare put into foreign carriers by the U.S. Still, the company remains the top provider of networking equipment in the world.

Huawei equipment is also banned in Australia, and this week the U.K. came close to doing the same thing. Despite being worried about the risks that Huawei's 5G gear poses to British wireless providers, the U.K. decided against banning its networking equipment in Britain.



1. pogba

Posts: 110; Member since: Jun 13, 2018

Potential national security threats aside, this is very true. With their product portfolio, if Huawei were allowed into the American market, they would overtake both Samsung and Apple. Even the government knows this and is in a way trying to protect Apple, Google and the likes.

7. Subie

Posts: 2364; Member since: Aug 01, 2015

Protect Google? Huawei phones run Android. And considering the market share Apple has in America, if this device were to overtake Apple it would only help Google...big time! IMO

36. shm224

Posts: 288; Member since: Mar 19, 2015

It's easy to say that when Huawegi gets away with IP theft.

55. Seatech21

Posts: 68; Member since: Jan 01, 2018

I wholeheartedly agree. Huawei would be a major disruption for the government's ability to spy on American's by implementing spyware. The government calls the shots. If you create a company and it gets big like a Google then best believe the government will give you an ultimatum. We control you and the company and reward you handsomely, or die!!!!

57. jacky899

Posts: 430; Member since: May 16, 2017

The ONLY surveillance hack ever found in Huawei's equipment to date was ironically implanted by the NSA. Edward Snowden leaked a document in 2012 that show how the NSA's Tailored Access Operations unit conducting covert operation “Shotgiant” beginning in 2007 had succeeded in infiltrating computer servers in Huawei's headquarters in Shenzhen, China by 2010. The success allowed the agency to spy on email communications of Huawei employees, including founder of Huawei, as well as steal the source code for specific Huawei products that could be used to exploit those products for espionage or cyberwarfare purposes. The purpose was to find ties between Huawei and the Chinese gov and also to give NSA the ability to roam through computers and telephone networks of all nations (allied or not) that use Huawei equipment giving the US the ability to conduct surveillance, and OFFENSIVE CYBER OPERATIONS.https://www.androidauthority.com/nsa-stole-huaweis-source-code-362824/https://www.nytimes.com/2014/03/23/world/asia/nsa-breached-chinese-servers-seen-as-spy-peril.html Not a single wrong doing was found to backup the many US accusations of Huawei after a decade of continuous spying on Huawei and the Chinese government by the NSA. In comparison with US companies like Google, MS, Facebook etc., have FAAARRRR more dirt as proven time and time again, doesn't that make Huawei a saint of a company? Last year, the US justified the ban on Huawei products that despite no evidence of backdoors in Huawei products were ever found (besides the NSA installed one), it doesn't mean Huawei will not embed back doors in future products or software updates. I think that is a very weak argument because the Chinese can use the same argument and ban all US products especially given the huge irrefutable list of evidence of NSA spying. In addition to mass surveillance of domestic civilians, Edward Snowden described, "NSA engaged in "dangerous" and "criminal" activity by "hacking" civilian infrastructure networks in other countries such as "universities, hospitals, and private businesses" NSA themselves have claimed to have "direct access" through the "Prism" program to the systems of many major internet companies, including Microsoft, Skype, Apple, Google, Facebook and Yahoo despite some of these companies later deny NSA's claim (for obvious reasons).https://www.theguardian.com/world/2013/jul/11/microsoft-nsa-collaboration-user-data The US recently asked Germany to stop using Huawei products. Germany asked for proof of Huawei working with the Chinese government or Huawei spying. The US could not present any. Therefore Germany refuses to give in to USA's pressure to ban Huawei.https://fudzilla.com/news/47805-german-watchdog-says-there-is-no-proof-of-huawei-spying

2. cmdacos

Posts: 4208; Member since: Nov 01, 2016

I think he meant trump is a loser with an attitude Hauwei makes great phones but their software is shite

5. iloveapps

Posts: 855; Member since: Mar 21, 2019

The same with Samsung.

24. iushnt

Posts: 3105; Member since: Feb 06, 2013

Note series are absolutely LIT though. No brand has even come close to it so far.

52. dimas

Posts: 3363; Member since: Jul 22, 2014

One UI is different. Not as snappy as xperia and oxygen os but tweaking on dev option makes it addictive to use.

3. P20prouser

Posts: 44; Member since: Oct 10, 2018

Threatened of thier own doings and idea

4. domfonusr

Posts: 1085; Member since: Jan 17, 2014

Its easy to say that if you are stealing all of your adversary's best ideas, as they are being generated, out the back door of each and every adversarial firm... when the time comes for them to sell their wares at prices that support their costs, all you have to do is set up across the street from them and sell their wares for a fraction of the cost. Labor is expensive, and coming up with new ideas doubly so; stealing ideas removes most of that labor cost in most cases. Its like the cowbird, that finds another bird's nest, and while the native bird is away, lays an egg in the nest. The native bird comes back to its nest, and cares for all of the eggs, and when they all hatch, it is the big ugly cowbird chick that clamours for the most food, and eventually pushes all of the native chicks out of the nest. Soon, all you have left is cowbirds, and the native song birds are all dead. The native song bird is the originator of the effort and thought to come up with new ideas and concepts. The nest is the capital needed to flesh out the ideas into workable products that are sold to consumers, and is possibly also symbolic of the US collegiate educational system. The native song bird eggs, which eventually hatch, are either the finished product of the corporations, or the varied students in the US collegiate educational system. The cowbird is any operator that comes looking for ideas or resources to steal away from legitimate companies that are trying to build products for the consumer in the traditional manner. The cowbird egg, which eventually hatches with the native song birds, represents the ideas and effort being stolen by the operator (the cowbird parent, who exercises no effort of their own in taking care of the offspring) because of the work done by the legitimate corporation (in this case, the native song bird parent taking care of the cowbird egg along with its own eggs). Eventually, the cowbirds outgrow the native song bird population... or in other words, the counterfeit product becomes the legitimate product by fiat at the end of the day. And so it is with this metaphor, that the US is like the native song bird population, and the Chinese are like the cowbird. Only one outcome is inevitable, and so the Chinese are actually right about the competition with the US since they can steal our IP from every American company and university that they can possibly hack into, until there will be nothing left to compete over. Is it right? Not in my book, but that is still debatable in some circles.

6. alanrock

Posts: 312; Member since: Oct 04, 2018

this rant was truly something...

8. domfonusr

Posts: 1085; Member since: Jan 17, 2014

Oh I know! Absolutely hilarious, isn't it? Talk about laying an egg...

10. lyndon420

Posts: 6790; Member since: Jul 11, 2012

It was a good read though. So you're basically saying... invasion lol.

9. Subie

Posts: 2364; Member since: Aug 01, 2015

Good post domfonusr. China and Huawei have been benefiting from hacking and stealing tech for years. Just ask Nortel about the devastating effects this can have. That's right, there is no more Nortel... Huawei took all their would be customers.

12. UnlimitedSkye03

Posts: 293; Member since: Apr 27, 2012

hhmmm, stealing tech? How can Huawei steal something that US doesn't have? If you've ever used any Huawei device, you know that it is more advance than anything US can produce.

41. JohnR

Posts: 152; Member since: Sep 08, 2017

Like what?

47. domfonusr

Posts: 1085; Member since: Jan 17, 2014

Huawei was able to steal IP and tech until they caught up to the others, and so only now is Huawei in a position to make something new that others have not yet made. They probably saved themselves a few trillion dollars off of the R&D cost of catching up to the big guys elsewhere in the world, but now their heist has come to fruition, and they are playing on the same stage with everybody else, at long last. Like I said, they will become the new standard only because they stole enough tech and IP to get to a place where they could be on the bleeding edge with others, and I have no doubt they will steal their way to dominance in this, as well. Everybody else's ideas all eventually will belong to the Chinese government. I am pretty sure Huawei will win the day, as a result of their unfair practices which will go on uninterrupted, and pro-Huawei internet bots and trolls, along with a number of people who are genuine about their feelings, will glory in it. I don't think the US has the stomach for fighting it for too much longer. Oh well!

18. stferrari

Posts: 56; Member since: Dec 15, 2014

Actually, quite a well constructed and lucid rant, as someone called it. It is refreshing to read such a well thought out and written post. Wether anyone on this site agrees or disagrees with this post, give the writer credit for such an intelligent expression of their opinion .

44. hssncy1957

Posts: 9; Member since: Apr 02, 2012

True, Hauwei is Chinese company and all Chinese company is required to assist their government when ordered. If you resist you will be expired or disappeared.

53. dimas

Posts: 3363; Member since: Jul 22, 2014

Lu guang, a chinese photographer showed the real effects of industrialization to china. He's still missing after defying govt. "requests" not to publish the pictures.

58. jacky899

Posts: 430; Member since: May 16, 2017

I remember watching Trump on the news saying Huawei stole it's 5G tech from US companies. It was so laughable because the whole world knows Huawei is waayyy ahead of the US in terms of 5G tech. Huawei invested $14 billion in R&D last year and is only $1 billion behind the largest two (Google and Samsung). Huawei will increase R&D budget to $15-$20 bil this year, which is likely more than double its entire annual profits and also making it the number 1 R&D budget in the world. Considering Huawei only makes a tiny fraction of the profits compared to Google or Samsung, this makes Huawei by far the company most willing to spend on R&D and innovation. Huawei filed a record 5,405 patents in 2018, the highest among corporate filers, the WIPO said in a report released this Month. Next came Mitsubishi Electric Corp, followed by Intel and Qualcomm. Huawei is also crowned the patent king in Europe. But surely, all of their diligent effort and generous R&D spending will be downplayed by US propaganda as being stolen from companies who don't even have that technology. Proof and evidence is not required when it comes to making accusations of non US companies.

59. domfonusr

Posts: 1085; Member since: Jan 17, 2014

I'm not saying that Huawei has NOT come up with something new on their own... I'm just saying that they had to steal their way to catching up with everybody else. For the last two or three years, Huawei has been at the same level as other non-Chinese OEM's thanks to the tech and IP theft that has occurred on everyone's watch. It is only now, long after the situation has already escalated from bad to worse, that this American President is 'taking action' on something that was never really in his control at all... the US and the Western World has already been sold out to China by their leaders over the course of several decades. We have, in recent years, moved from the end of China needing to catch up, to the tipping point where China now has an advantage, and can leverage their own resources ahead of other powers. Make no mistake, China is going to consolidate real international power and mind-share in the coming decade, and then, in time, they and their allies will come for the US, and all the Americans that don't get put in their shallow graves, and thus remain, will be working for China. The college that I went to, when I started there in 1999, had a fairly diverse population of students, but the majority were Americans. Student population sat at about 1500 in a good year. Now, by the time I finished my bachelors degree in 2017, student population had shrunk slightly, to about 1200, but for the last decade or so, the student population had gone through a significant transformation: now, out of those 1200 students, about 500 are from mainland China. Many of them are the children of prominent members of the Communist Party in China, and their parents buy them a lavish life-style here in America - when I was last on campus, we had a Chinese-only Maserati club, and occasionally they would invite their American friends, like me, to come and see what they were up to. There were at least twenty different Maserati's of various colors, mostly white, black, and blue, on our campus, and they took up the majority of one of the upper parking lots on campus. Others had other nice cars - Mercedes, BMW's, Audi's, they were everywhere. Now, I have never been one to say that anyone should envy anyone else, and I know that the area that I live in is relatively affluent on the average, but wow... twenty Maserati's, diamond-encrusted gold-plated iPhones, a handful of Ferrari's, gold-plated MacBook Pro's, and all sorts of other nice stuff these students had. Some of them were really nice and cool to get to know, but a lot of the others let me know that I was unwelcome, and so I stopped my attempts to hang out with anyone in that crowd.

60. domfonusr

Posts: 1085; Member since: Jan 17, 2014

The Chinese students were a minority of about 40 to 50 when I left the school in 2003 due to my health problems, and when I returned in 2014 they were nearly the majority on their own at 450 out of 1200. And to think that I was the one who was supposedly "privileged" because of the color of my skin... I have never seen a group of kids between the ages of 18 and 25 who were so privileged as these kids were, for the most part (there were always a few exceptions), and they took control of the school's money and politics in a hurry. The last time I voted for a school president, the winner of the contest won because she specifically promised the Chinese students positions of power within the student government at the expense of both native-born and diversified candidates. It did a lot for the school's ability to get new funding, and to their credit they single-handedly funded the reconstruction of the main student center on campus, but it never really quite settled right with me. If China keeps growing at the rate they are, economically, technologically, militarily, and so on, they will be the next world superpower within the decade, and they will, for lack of a better term, come over here to America and just plain bury us!

11. frequency

Posts: 107; Member since: Aug 13, 2013

let's wait 2 more yrs to verify his words. I realized this is about politics, but nothing on copyright s**t. Why doesn't Huawei open a factory in the U.S? Hire Americans and manufacture everything whatever they want to sell inside of the U.S.

14. UnlimitedSkye03

Posts: 293; Member since: Apr 27, 2012

One of the biggest reason I see is because labor cost is too high in the US as compared to China.

16. frequency

Posts: 107; Member since: Aug 13, 2013

no, if you do a calculation, ever since Chinese labors are not cheap anymore. It wouldn't be too much different to spend. But Huawei will have its north american market, plus the future of the company.

17. UnlimitedSkye03

Posts: 293; Member since: Apr 27, 2012

What? Chinese minimum wage cost 22cny per hour which roughly $3 while $7.25 for the US so how is it not cheaper to make something in China than in the US when it cost half the labor? and materials wise they can also get it cheaper in China.

30. mootu

Posts: 1519; Member since: Mar 16, 2017

Those dividends are for Huawei's staff who actually own the company.Huawei is privately owned and not a publicly traded company. Huawei's phones are manufactured by Foxconn (just same as Apple) and those Foxconn workers work 12 hour shifts on minimum wage.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.