Huawei speaks out: "we have decided to exit the US market”

Huawei speaks out: "we have decided to exit the US market”

Chinese Huawei, the world’s largest network equipment maker and one of the world’s top 5 smartphone manufacturers, will quit the US market amidst allegations of cyberspying. In a rare appearance, chief executive Ren Zhengfei revealed to journalists that Huawei will indeed step out of the United States market after numerous allegations from the American Government. It’s hard to say whether this applies to its network equipment only or other devices as well such as smartphones.

The House Intelligence Committee in particular has accused Huawei of spying, but the company has fiercely denied the allegations and company VP William Plummer called the committee’s investigation a “comedic sham…border[ing] on corporate defamation.” Plummer defends Huawei’s position that House Intelligence Committee chairman Rep. Mike Rogers “has made multiple claims about China-headquartered Huawei’s integrity, not once – not once – with a shred of demonstrable substance.”

The first investigations into Huawei’s alleged spying practices kicked off in 2011, and the following review concluded “that the threat to the supply chain [of telecommunications equipment] constitutes a rising national security concern of the highest priority.”

Huawei, of course, as any other big Chinese manufacturer, has a complicated relationship with its own Chinese Government and China’s People’s Liberation Army. Huawei CEO Ren himself is a member of the Chinese Communist Party. Right now, Huawei says its US handsets are “still selling well,” which might be taken as a hint that the exit will happen mostly in network equipment.

source: Foreign Policy (paywall) via GSM Arena

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48 Comments

1. sarb009

Posts: 322; Member since: Jun 15, 2011

Spy doesn't want to be spied. So they have to go

41. Ashoaib

Posts: 3260; Member since: Nov 15, 2013

Thats a very dirty way of competition... ehen US companies are struggling to compete against cheap chinese products, they are using dirty tricks to survive... US itself is a biggest spy, who are they to call others spy?... this is just a cheap phony trick to keep chinese firms out of eating US market...

2. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Very good.

3. HASHTAG unregistered

It's kind of a shame considering that we (US) are the ones who are spying.

10. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Microsoft is watching you...

29. alpinejason

Posts: 262; Member since: Sep 06, 2011

and so is google and ios

31. tedkord

Posts: 17093; Member since: Jun 17, 2009

And they're all reporting back to the NSA.

36. deewinc

Posts: 454; Member since: Feb 21, 2013

And Obama is smiling to this =D

22. McLTE

Posts: 922; Member since: Oct 18, 2011

well HELLO.. If you were a country and strongly believed another coountry, especially one that doesn't have a great track record of good behavior, was spying, what the F would you do? Would you say.. well heck, we spy too.. so go ahead an collect our information and secrets? NO.. you'd applaud their departure and do what you can to ensure they don't succeed at accessing your information. It has ABSOLUTELY NOTHING to do with what you are doing. Everyone spies on everyone else, it's true.. and when you catch someone doing the spying, you raise hell. That's how it works. I'm not saying this company is guilty of spying for China.. I have no idea.

45. Dr.Phil

Posts: 2250; Member since: Feb 14, 2011

So then, according to your comment, you wouldn't be upset if the entire world decided to no longer offer US products from companies like Microsoft, Google, and Apple because they have a track record of spying on their customers? You also wouldn't therefore be upset if those companies lost billions of dollars by no longer having their devices being offered in foreign countries? Because I believe that these foreign governments should have a backbone and no longer offer products from US companies that are known to spy on their citizens.

4. tiara6918

Posts: 2263; Member since: Apr 26, 2012

Too bad, they could have made it big there

6. sum182

Posts: 229; Member since: Nov 19, 2011

None of their decent stuff never came to the US right? I've only ever seen low end Huawei stuff, but i know they make some very nice stuff.

9. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Yeah, Huawei is one of the manufacturer that's going big, can't believe they give up so quickly.

13. Finalflash

Posts: 4062; Member since: Jul 23, 2013

They're giving up because of American protectionism not their ability to compete. They are being accused of crimes with not a shred of evidence and are being restricted from selling a good amount of their products here. It is largely a plan to keep the chinese out of the lucrative US mobile hardware market because they could go full Google on the locals and kill the margins that the phone industry is so used to.

15. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

It's really not a big deal, Huawei don't need to be in the US market. Huawei still have a big chance because there are Asia, Europe markets etc.

21. JGuinan007

Posts: 699; Member since: May 19, 2011

Where do you get your info from? The US smartphone market is pretty much dominated by companies outside the US already. Huawei has close ties to the Chinese Gov, they have a huge record of intellectual property violations, ties to Iran, and a pattern and practice of potentially illegal behavior. The US is not the only country with these concerns Australia, the UK and other European countries also have these issues but places like the UK are too invested with Huawei tele comm systems but you can bet they will have a lot more eyes watching them.

47. andynaija

Posts: 1247; Member since: Sep 08, 2012

They really could have. My first Android smartphone was manufactured by them and I actually enjoyed it, until I lost it. But for some reason like sum182 said, it was always the low end devices coming in instead of the more upper end equipment.

5. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Sad, very sad... Many people people in the US think that Huawei is spying them and wants to steal their personal information for the Chinese Government, so they don't buy a Huawei product. Seriously, why would the Chinese Government want to steal your mom's bikini pics? What a bunch of naive peoples. Don't give up, Huawei.

7. Commentator

Posts: 3722; Member since: Aug 16, 2011

Or, you know, billions of dollars in corporate secrets...

16. darkkjedii

Posts: 30786; Member since: Feb 05, 2011

He's only 15 or 16 bro, we gotta remember that. +1

17. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

So what? I'm not ignorant and childish like you, Apple fanboyjedii.

24. darkkjedii

Posts: 30786; Member since: Feb 05, 2011

My points made

26. Taters

Posts: 6474; Member since: Jan 28, 2013

Not even close to it buddy. His point was made actually...

38. deewinc

Posts: 454; Member since: Feb 21, 2013

Learn to respect other people with regard to wisdom and not age.

33. tedkord

Posts: 17093; Member since: Jun 17, 2009

As pertains to smartphones, they're not going to get any corporate or government secrets off a phone I hold. On the other hand, they're not going to find bikini pictures of my mom, either. WTF is going on in that family?

8. skyline88

Posts: 697; Member since: Jul 15, 2013

typical Americans, nothing weird.

11. papss unregistered

What is that supposed to mean? Im glad that one chinese company is leaving the US. I say more should leave.

12. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

More should leave? What if Foxconn stop manufacturing iPhones for Apple, no more iPhones... At that time, the one who's leaving is Apple.

14. papss unregistered

So be it.. as ive stated foxcon is a waste and id prefer to have mg products made by adults and people who have a choice. Ill pay more just for this to happen.

20. sprockkets

Posts: 1612; Member since: Jan 16, 2012

Sure. When you find that iphones and ipads are out of stock 75% of the time, thus making the asp go up a few hundred dollars + another hundred for making it by decent paid workers... I doubt you'll want your $800 ipad. and $1000 iphone.

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