Business Essentials for Professionals


Huawei Founder Offers Sharing Of Its 5G Tech With Western Companies For A Fee

Huawei Founder Offers Sharing Of Its 5G Tech With Western Companies For A Fee
Huawei has proposed selling off its current 5G know-how to a company in the West so that the security concerns surrounding the company among some of the Western countries and those that have been voiced by the United States president Donald Trump could be addressed. This proposal was made by the chief executive of the Chinese company which is the largest manufacturer of telecommunication equipment in the world and a leader in the latest mobile connectivity technology called 5G.
The company that purchases Huawei’s 5G technology will be free to "change the software code", said Huawei chief executive Ren Zhengfei. Such changes would therefore allow addressing issues, in case there are any flaws or suspected backdoors in the equipment without Huawei being a part of it,
Use of Huawie’s equipment in their 5G networks has been banned by the US and Australia. The UK is still undecided on the issue.
All allegations by some of the western countries that the equipment of Huawei are can be used by Chinese agencies to spy on them have been repeatedly denied by the Chinese company. Huawei has said that it is privately held company and is not controlled or influenced by the Chinese government.
The proposal of the company (Huawei) helping another country's business to compete represented an "extraordinary offer", said one expert, who had previously cast doubts on Huawei's claims to independence.
"Perhaps the explanation is that Huawei recognises that it is unlikely to be able to bypass the efforts the Trump administration is putting into minimising its scope to operate in North America, Western Europe and Australasia," said Prof Steve Tsang from Soas University of London.
"But it's difficult to see Nokia or Ericsson being interested in buying it. And it's also difficult to see how an American company would be able to reassure the Trump administration that it's absolutely top notch American technology. And if they can't do that, why would they want to spend tens of billions of US dollars on something that will quickly become out-of-date."
This extraordinary proposal was made by Huawei's founder Ren Zhengfei during interviews with the Economist and the New York Times.
If such a deal does take place, the technology of Huawei could be used by a Western firm to develop competing 5G products. According to the offer, a purchaser of Huawei’s 5G technology would gain ongoing access to the existing 5G patents, licences, code, technical blueprints and production engineering knowledge of the Chinese company.
"[Huawei is] open to sharing our 5G technologies and techniques with US companies, so that they can build up their own 5G industry," the NYT quoted Ren as saying.
"This would create a balanced situation between China, the US and Europe." "A balanced distribution of interests is conducive to Huawei's survival," he added speaking to the Economist.
The quotes were confirmed and the idea was confirmed to be representative of a "genuine proposal", said a spokesman for Huawei.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc