Who Built Huawei? (And What The Heck is Huawei?)

Huawei, one of the largest Chinese tech companies
that has recently become public enemy number one in the eyes of the USA. This situation is understandable: Huawei’s
shadowy practices and controversial management style have made it an easy target for the
West. In this video, we’ll see all the strategies
Huawei used to go from an unknown startup to a global technological superpower in the
span of just 30 years. This video is brought to you by Dashlane. Keep all your passwords safe by registering
with the link in the description. Huawei came about in a turbulent time for
China: in 1979, the country was in many ways stuck at a major crossroads. Only a few years had passed since the death
of Chairman Mao Zedong, the founder of the Chinese Communist Party who had dominated
all aspects of China during his reign. Unfortunately, his aggressively optimistic
policies often did more harm than good and by the time his reign was over China was left
isolated, underdeveloped, and expected to enter yet another period of massive poverty
and famine. During the few uncertain years after Mao’s
passing, there was a power struggle within the Communist Party on who would be his successor. Ultimately, it was Deng Xiaoping who emerged
victorious and became the de facto ruler of China. Now, Deng was a very contradictory figure:
on the one hand he was one of Mao’s earliest allies during the revolution, yet unlike Mao
he was actually a competent economist, which allowed him to realize the shortcomings of
his predecessor. Although Deng maintained Communist rhetoric
and the structure of the Communist Party, he initiated significant economic reforms
in 1979, which to many of his fellow party members were dangerously close to capitalist
treason. Deng began decollectivization, the process
in which assets and industries owned by the state were contracted out and owned privately. The reforms were, of course, very popular
and very successful, as production around the country became more efficient. China created its own private economy, in
addition to its state-owned enterprises. The shift in Chinese policy was not just internal,
however: China also opened itself up to the world, establishing much-needed foreign trade
relationships. In 1980, the Chinese government established
the Shenzhen Special Economic Zone, which, as the name implies, is a special area carved
out exclusively for international trade that made great concessions for companies that
could not be found anywhere else in China. Unsurprisingly, entrepreneurs from across
the country flocked to the small city of Shenzhen to pursue their business, driving up the city’s
population from 300,000 to over 4 million in the span of just twenty years. One of those entrepreneurially-minded individuals
was Ren Zhengfei, a member of the Chinese military and Communist Party. He was a survivor of Mao’s mass famines
in the late 1950s who left his rural province to join the Chinese military. He was no regular footsoldier though: instead
he served as a member of the Liberation Army’s engineering unit that would build many advanced
factories for China as part of Deng’s economic policy. Ren Zhengfei would serve the People’s Liberation
Army dutifully until 1983, when his unit was disbanded and now left out of a job, Ren had
to pivot into the civilian economy. With his skills it was pretty easy to find
work, which he did with the state-owned Shenzhen Electric. He worked there for 4 years until he decided
to start his own company, Huawei, in the Special Economic Zone, thus giving a clear indication
that Huawei would be oriented towards exporting and expanding internationally. In the eyes of the Chinese government any
enterprise dealing with technology was a welcome endeavor, which is why Ren received an extremely
generous loan from a state bank to start Huawei: he got $8.5 million and hired 14 people right
off the bat. The initial plan was simple: Huawei would
import switching gears from Hong Kong and then sell them back home in China. That’s how virtually all Chinese companies
functioned back then: they’d import foreign technology, usually through a joint venture,
and then they’d do their best to reverse-engineer it and to start making it themselves. It’s pretty clear that that is exactly what
Huawei did: during its first few years it had 500 people working in R&D and only 200
in production. It should come as no surprise that one of
Ren’s first clients was the Chinese military, whose leader he convinced that owning your
own telecommunications hardware was a matter of national security. Once the government contracts started coming
in, so did the regular supply of government funding, which to Ren’s credit he did not
embezzle. Instead, he invested in expanding Huawei’s
R&D and production capacity, sometimes even operating at a loss to do so. On the market side, Ren’s priority was getting
market share, so he priced his products so competitively that just 10 years after its
founding Huawei had overtaken Ren’s former employer as the largest telecommunications
company in China. Now, there’s a lot that made Ren’s company
uniquely suited for rapid expansion: to start, he adopted a structure somewhat similar to
the capitalist shareholding we’re all familiar with by allowing his employees to invest in
the company based on their performance. That was Ren’s way of not only attracting
talent, but keeping it, although amidst the very lax labor market at the time, Ren could
enforce some pretty questionable working standards. The employees of Huawei were subjected to
long work hours and a toxic work environment, with schedules going from 9am to 9pm, 6 days
a week. In fact, in its early days, Huawei’s offices
were actually equipped with mattresses, as it was regular for employees to work late,
sleep in the office, then wake up to continue working the next morning. The almost fanatical loyalty and dedication
of its workforce allowed Huawei to excel in one particular activity: corporate espionage. Now, Chinese theft of intellectual property
is nothing new, but Huawei did take it to a new level: in 2003 for example, they copied
over a million lines of code from Cisco routers, which they then used to make their own product
line. Another example from 2007 goes even further,
when an employee of Motorola was discovered to have been sending IP directly to Huawei
executives. The nature of Huawei’s behavior is truly
systemic, not least because the company actually has an internal messaging board, where employees
can share stolen competitor secrets and depending on their value they can actually get bonuses
for them. Now, the amount of allegations vastly outnumber
what’s been proven so far, but even the amount we do know paints a very bleak picture. It is only Huawei’s extreme dedication to
competitive pricing that allowed international clients to overcome their reputation. For most clients abroad, the name Huawei was
totally unrecognizable even as recently as ten years ago. It was in 2009 that Huawei truly made it big
abroad. That was when they were awarded the contract
to build Sweden’s 4G network, which honestly came as a big surprise at the time, considering
the fact that Sweden itself is home to one of the world’s biggest telecommunications
companies, Ericsson. Over the next decade Huawei’s hardware would
become the foundation for networks across the world, especially in developing markets
where Huawei’s ties to the Chinese government were less of a concern. The extent of Huawei’s international growth
has been so rapid, to the point where they’re now earning over $100 billion in revenue from
170 countries, that the West is actively conspiring to bring them down. The recent ban by the US is just the opening
salvo in what can easily develop into a technological Cold War between the countries economically-aligned
with China and those under US influence. Since telecommunications networks form the
backbone of the modern economy, it is only natural that countries deem this a matter
of national security. Now, the fact that the US has a geopolitical
incentive to keep Huawei down is another question, but Huawei isn’t doing itself any favors
by being so secretive. In one of his few public statements, Ren said
that Huawei had never received any request from the government to provide improper information,
but nobody was really convinced by his words. Since under China’s cybersecurity law, any
Chinese company must provide the government with access to its data, it’s no surprise
that the global community is skeptical. In addition, Huawei’s employee ownership
makes it exempt from many of the more detailed public reports most other public multinationals
have to release. It is very telling that, for a company operating
globally, there is a very stark lack of diversity in Huawei’s management: all 17 board directors
are Chinese, have no degrees from non-Chinese universities, and have all been with Huawei
for over 20 years. All of these factors are conspiring against
Huawei, but it’s not yet clear whether the politics will overcome the economic incentives
for most of the world. What is clear, though, is that online security
is becoming an increasingly important aspect of modern life and if you wanna keep all your
stuff safe online well then you should probably consider using services like Dashlane. It’s easy to just use one password everywhere,
but what’s even easier is to let Dashlane generate strong passwords and then enter them
for you across all your devices. On top of that, Dashlane also comes with a
VPN service and to show you just how awesome it is, I’m gonna give you a free trial of
Dashlane if you register using the link in the description and 10% off their premium
service to the first 200 people that use the code ‘businesscasual’. Anyway, thank you for watching. Make sure to follow me on my Instagram page
and to like this video if you enjoyed it. We’re gonna see each other again in two
weeks, and until then: stay smart.

Maurice Vega

100 Responses

  1. If you liked my take on the rise of Huawei you'll certainly enjoy PolyMatter's latest video on Huawei in the present. Go watch his beautiful blend of geopolitics and business here: https://youtu.be/hx1tEXrYZLE

  2. not once mansion that Huawei is advanced in 5g technology, how unbiased, lol
    watch the video carefully, the entire video didn't show one single positive aspect

  3. At first I thought you sound Noble try to provide this information fair and honest, but in fact you are no better you're trying to promote your own company selling your service ask if you are more secure than others with that note I say f*** you.

  4. Facebook spy you: yes.
    Google spy you: yes.
    Cisco spy you: yes.
    Amazon spy you: yes.
    NSA spy everyone: yes.
    US gov can enforce them to do as they please, yes and if not NSA will do the job, no one has clean hands.

  5. The take is completely from American propaganda standpoint. Bottom line is American (not to mention older European) companies can't keep up with Chinese efficiency. Not just Huawei, but also Xiaomi, ZTE, Lenovo and so on. They're past the phase of stealing technology now. Huawei has a better camera than iPhone and is the leader in 5G. Spying: of course they do it, but so do Fb, Google, Microsoft, NSA and American chip producers with their backdoor. State intervention: indeed, but so is Uncle Sam stepping up for its companies. And let's not forget. The Chinese have the inhumane long hours and low pay, but America has the printing press of the dollar and the army, to defend this privilege and pressure governments worldwide.

  6. I LOVE YOUR VIDEOS SO MUCH !! Thankyou for your channel I allways Wait for the next episode ?

  7. Now I understand why Tojo wanted to destroy that whole shitty country

    America should have helped the Japanese empire instead of cutting off supplies to them and provoking a war

  8. There are 2 sarcastic facts about Huawei's interaction with the western world.

    One is the failed acquisition attempt from Motorola. In 2003, there was already a deal between Ren and Mike Zafirovski, COO of Moto by then, in which they reached a consent of Ren selling the WHOLE Huawei to Moto by only 7.5bn usd, while Ren's team only reserving their employee positions. And you know what? The deal was turned down by Moto board, stating that 7.5bn is too much for an 'unknown foreign quantity'.
    And the other funny thing is that when Huawei was on the climax of copying and reverse-engineering, the U.S. gov did not take it too seriously. However, when Huawei is now actually presenting their own innovations to the market, Trumpists went mad.

    Ren has always followed an military methodology. He's no stranger to abusing useage of labor and espionage, as long as they payes off to him and his legion employees. He also insists on R&D efforts with no significance on the market in the near future, with which Huawei would take them as reservation for 'wartime'. Such policies make Huawei like a hamster in a supposed tropical island who stores nuts for a winter no one even imagine that it may come.

    And to many descent and naive people's surprise. Now the winter has come. And it's a fxxking Totalen Krieg, with no one within it being safe.

  9. Copying? The Americans copy automotive technologies and industrial technologies from Europe in the past. Now the Americans claimed China copy from them. The 5G technology which the Americans are yet to achieve? The high speed railways technologies that the Americans lacks behind?

  10. This video is only a propaganda against Huawei. It has nothing to do reality and so far as the concern of spying, USA also does the same thing.

  11. So. Investing in R&D was the key to success. From beginning almost 500 people in r&d and 200 in production. So they work hard to do research

  12. Always Foreigners pretend to know more about others much more than the people them self and l broadcast fake ideology for people to see their propaganda work shame on you.

  13. Still want a free and prosperous Hongkong after 2047? Want to keep Taiwan safe and independent? Still interested in liberating the Tibetans and Uighurs and stop China from claiming the vast South China Sea?

    Want fair trade with China? Want to stop your country from being bullied and kowtowing to China out of fear due to its economic and military might? Want to stop China from harvesting organs without consent?

    There may still be hope. We all must work together to free China and the world from the the Communist Party while there is some precious time left.

    Everyone yearns for freedom from oppression and wants accountability from their government. No former Communist country has ever chosen to revert to it. Nobody wants it. It is merely a relic of the past. The people of China should be given a chance to choose their own government too. Even if some claim that all Chinese love the CCP, let there be free and fair elections to prove that.

  14. All, l know Huawei is a secure company n assured to be trusted n the US action is definitely political.On the contrary the US corporate were almost all intertwine with the US politic,intelligence n military.Espionage is nothing new in the US they had been committing such act on the Americans itself as well as foreign countries.Ironically now they are pointing their finger at others they themselves were doing n even without proofs.Clear n obvious POLITICALLY MOTIVATED.

  15. They should never allow nonChinese or those that didn't go to Chinese schools to be board members that's how spies enter a business

  16. When he touched on the company's espionage tactics I almost fell for it…after reflecting for a moment I'm reminded of Bill Gates and his thievery to get to the top…Steve Jobs and his thievery to get to the top..I'm sure the list goes on and on for American start ups. They all do whatever they can get away with the get ahead

  17. Ren Zengfei did a great job building Huawei as one of the biggest telecommunication company in the world with financing from the Chinese government. The bad thing about Huawei is corporate espionnage and the exploitation of their workers who are working long hours.

  18. China bans hundreds of western companies to operate within its border and threatens vengeance on any country that comply with U.S. Huawei ban. If the company isn't part of the masterplan to steal all sorts of information, why would they go as far to damage diplomatic relationship with other countries?

  19. Realpolitic: "China IS Nazi Germany: Tibet is their 'living space', and the Uighiars are their Jews, concentration camps and all. They've attacked their neighbours in the past, and NOW Xi is acting like Hitler mid-'30s." With those boomer subs on China's doorstep (thanks, Kim), Germany in '45 might be China's new look if Xi keeps up his Hitler '35 act. Appeasement? NO!
    BOTTOM LINE, even before China kidnapped and tortured two Canadian diplomats, the US and EU, well, the whole world more or less, said (publicly or privately) that China can't be trusted to play by the rules, and how does EVERYTHING China is doing to Canada NOT prove China is a criminal, rogue state? China's treatment of Canada PROVES ALL OF HER INTERNATIONAL CRITICS RIGHT! China CANNOT be trusted, they start kidnapping people like North Korea does at the drop of a hat, and breaking trade laws whenever it suits them, Canada is all the proof ANYONE NEEDS.
    Does anyone really think I didn't just sum up every conversation about China that's happened at the UN so far THIS YEAR, after China kidnapped and tortured those Canadian diplomats? Way to royally screw yourself, China.

  20. Do you like my rendition of Chairman Mao? I like you and America very much. Bow to Mao now bro. You have now been infected, you will do as I say code in effect YZ892

  21. Lol keep ignoring all the real problems in your countries by talking against Huawei and China people, that's the real conspiracy

  22. Bec. of your envy of huawei in advance of their 5G tech…..wow you putting so much effort just to defaming huawei, unbelievable !

  23. Things we learn from Huawei;
    i. Focus more on research & development than everything…So does “study”

  24. So Chinese have been stealing since they entered Global Markets?
    No wonder they are being aimed. Even if they they don't supply CCP with sensitive information, they are still stealing tech, which is laughable. They hate west so much that they steal our tech lol. Whats next? They are gonna steal and copy Democracy too? I hope they do!

  25. What is missing from this analysis is that American tech companies are sharing the same amount of data with the government in a similar fashion. We know this from Snowdon's leaks you need to give more details to clarify why the two are not mirroring each other's behaviour. When it comes to surveillance, how large is the difference between the two? I'm not ranting about the deep state here. It's publicly confirmed how much data all of the Five Eyes are collection from private companies compared to that of China? What is the data on that?

  26. I don't care if Huawei steal data or not. All I care is they make one of the best smartphones as well as fantastic laptops anf gadgets

  27. Huawei will be a smoking hole in the ground if Xi's criminality doesn't stop: China kidnaps and tortures Canadian diplomats, has a Nazi "living space" genocide in Tibet, puts a MILLION Uyghars in Concentration Camps, their children in other Concentration Camps, that's the Dem's argument for bombing China back to the Stone Age, just like Germany '45. Kim has US boomer subs on China's doorstep, Dictator-Fanboy Trump's own polling says he's done, and the Dems idealize Canada, HATE Putin, and have GOP backing to STOMP China. Xi and Putin are SCREWED.
    China might have gotten away with just the Nazi-inspired genocide in Tibet, but harvesting organs from innocent citizens, plus the Uyghar horror, and now extorting a Western country like Canada, who can politically bridge the EU, UK, and Aussies with the US against China: glaring mistakes.
    Seperating families is a hot-button issue for the Dems, they are spending MILLIONS on it next year whipping up a frenzy to crush Trump, and China just admitted they did it on a vast, Nazi scale. OOPS!
    I majored in History: Germany in '45 will be China's new look if Xi doesn't stop his Hitler-'35 act, and if China thinks Realpolitic justifies Xi's current arrogance and brutality, bombed back to the Stone Age is the real Realpolitic, just ask Germany.
    Don't get me started on what a Dem President is willing to do to Putin.
    Just sayin…;)

  28. Ms. Meng is living in one of her Vancouver mansions with her husband, shopping and eating in restaurants, and has to be home by 11pm (poor baby), with a million-dollar legal team to overwhelm overworked prosecutors if there is the slightest flaw in the US case. She shouldn't have LIED ON US SOIL! As opposed to China murdering a Canadian whose case had already been adjudicated, when political interference reopened it to force a death penalty.
    The "domestic affairs" argument doesn''t work anymore when you pull that evil crap on foreigners, China, and the West has noticed Xi's arrogance and brutality now being applied to the rest of world. Line crossed! China seperating those Uyghar families was a HUGE mistake, admitting it will destroy Xi, and maybe China. The frenzy the Dems whip up on family seperation in the next year to defeat Trump will immediately be applied to China when they gain power, with full GOP backing, and the American people will sign off on ANYTHING they want to do to China. ANYTHING!
    And Torture is Torture, China is still Torturing (by UN definition) 2 foreign diplomats (by anyone's definition, and Canadian!), 1 accredited, 1 guilty of a technical violation caused by the glacial speed of China's incompetent bureaucracy in processing his org's application for accreditation. They are still being "Interrogated" constantly, ie more Torture on top of the Torturous conditions that contravene UN definitions of Torture.
    So where does it go from here? The Dems will be in power long before the Meng case comes before Canada's Justice Minister, according to Trump's own polling. That's years from now, and the 1st chance for the Canadian govt to actually do anything: they can't touch her case before the judge's decision on extradition, which all her lawyers will complicate to no end. Realpolitic: the Dems idealize Canada, it's the US without rednecked Republicans, and they will back Canada to the hilt against China, unlike Trump, who's annoyed because Canada burned him on NAFTA.
    Then China will have their realpolitic defense of kidnapping and torture OUTSIDE their "domestic sphere" added to decades of Tibetan genocide (common knowledge, thanks Hollywood stars), years of concentration camps (the US public will buy that definition, accurate or not) and ESPECIALLY family seperation (which Xi admitted), both on a Nazi scale (again, the US public will buy it), plus live organ harvesting from people for their political beliefs (!?!, again common knowledge), and here's what all that Realpolitic leads to:
    China has a Nazi "living space" genocide in Tibet, a MILLION Uyghars in Concentration Camps, their children in other Concentration Camps, and now Tortures foreign (Canadian!) diplomats: that's the US argument for bombing China back to the Stone Age, just like Germany '45. Kim has US boomer subs on China's doorstep, Dictator-Fanboy Trump's own polling says he's toast, and the Dems idealize Canada, HATE Putin, and have GOP backing to STOMP China. Xi and Putin are SCREWED.
    China might have gotten away with their Nazi-inspired genocide in Tibet, but harvesting organs from innocent citizens, plus the Uyghar horror, and now extorting a Western country like Canada, who can politically bridge the EU, UK, and Aussies with the US against China: all glaring mistakes.
    Seperating families is a hot-button issue for the Dems, they are spending MILLIONS on it next year whipping up a public frenzy to crush Trump, and China just admitted they did it on a vast, Nazi scale. OOPS! The American public will be howling for blood.
    I majored in History: Germany in '45 will be China's new look if Xi doesn't stop his Hitler-'35 act, and if China thinks Realpolitic justifies Xi's current arrogance and brutality, bombed back to the Stone Age is the real Realpolitic, just ask Germany.
    Don't get me started on what a Dem President is willing to do to Putin.
    Just sayin…;)

  29. Primarily a 'dashlane' promotional video. All countries were and still are engaged in industrial and technological esponiage. Can any say no to that?

  30. I feel is normal. China was poor for so long. Ofcourse they wanna develop. Most developed countries had worse practises than China has now. And don't bring up the argument that what they do to Africa is worse than the colonial powers. "IMF is such a good benefactor "..

  31. Your story is NOT entirely true. However, why reinvent the wheel when u van steal knowledge for a good takeoff?

  32. Intellectual property infringement requires power plus stealing. Since the chinese arent white they cant ever infringe on patents. White peoples ideas might be stolen, but since the chinese do not have power, they are not guilty of patent infringement or intellectual property infringement. Its part and parcel with being white that the chinese can steal from you without repurcussion. Its so dumb that Trump doesnt get this.

  33. People in the pro US media easily forget how the US intelligence listened in on the leaders of its allies, like Angela Merkel's personal phone, and now they blame Huawei of being able to do the same? What they don't tell its readers including this channel is that every router can be hacked into, no matter what brand……..

  34. To gain credibility You need to mention the resource of your information. I have a doubt about all your videos.

  35. Whoever has computer sense would NEVER EVER, I mean EVER store all your password into some app server on the internet which is basically hackers magnet. The video is good, but advertisement is not so good ?

  36. This is a propaganda video courtesy by those in charge. ? If you are talking about shady corporations, please investigate and report about Enron, Theranos, Monsanto, Goldman Sachs, Bernard L Madoff Investment Securities LLC and etc! America has much more shady corporations in operation.

  37. Why don't you make a video about Alstom? And explain how the Americans makes a take over and share what is wrong with the USA?

  38. Have you watched the documentary by ex-USA President Barack Obama? In short summary, it shows the cultural (& mindset) differences about Chinese vs Americans.

  39. Mao's " aggressively optimistic policies", you mean mass murder at a psychopathic blood thirsty rate? Your history teacher must have been a fan of ANTIFA.

  40. abstract: chinese goverment runs huawei and steal data for both companies and regular people as well but DASHLANE can prevent this

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