-What is the problem with China...?
[ Huawei ]
[How Chinese spies made billion-dollars.]
Huawei became one of the largest unknown startups in only 30 years. Here's how they did it.
went from an unknown startup to a global technical superpower in a span of only 30 years.
In 1979 in Huawei China, the country was stuck at a major crossroads in many ways, just a few years after the death of Chairman Mao Zedong, the founder of the Chinese Communist Party, which dominated China in all aspects during his reign. Unfortunately, his aggressively optimistic policies often did more harm than good and he was expected to enter another round of isolated poverty, underdeveloped, and rampant poverty and famine until his rule over China was over. During some uncertain years after Maopassing, there was a power struggle within the Communist Party as to who would succeed him. Ultimately, it was Deng Xiaoping who emerged victorious and became the de facto ruler of China. Now, Deng An He was one of Mao's earliest allies during the revolution, yet unlike Mao was actually a competent economist, which allowed him to realize the shortcomings of his predecessor. Although Deng maintained Communist rhetoric, and, also the Communist Party structure, he initiated important economic reforms of 1979, which were dangerously close to the cause of capitalism among his fellow party members. Deng began divestment, processing which contracted state-owned assets and industries and was privately owned.
Undoubtedly, the reforms were very popular and very successful, production became more efficient throughout the country. China built its state-owned enterprises and its own private economy. The change in Chinese policy was not just internal, however: China also opened itself to the world, establishing much-needed foreign trade relations. In 1980, Chine's government established the Shenzhen Special Economic Zone, designed specifically in international trade, which made many concessions for companies that could not be found elsewhere in China. Unexpectedly, the country's entrepreneurs set up in the small city of Shenzhen to further their business, taking the city's population to over 4 million over a period of twenty years.
One of those enterprising people was Ren Zhengfei, a member of the Chinese military and the Communist Party. She survived a major famine in Mao in the 1950s, leaving her rural province to join the Chinese army. Although he was no regular footseller, instead, he served as a member of the engineering unit of the Liberation Army that would build several advanced factories for China as part of Deng's economic policy. Ren Zhengfei would serve the People's Liberation Army until 1983, when his unit was dissolved and now left the job, Ren had to pivot into the civilian economy. Having his skills, it was very easy to do what 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 export and expansion internationally. The Chinese government's approach, any enterprise dealing with technology, was a welcome effort, which led to Ren getting a very generous loan when he started State Bank. He received $ 8.5 million and hired 14 people off the bat. The initial plan was simple, in which Huawei imported switching gears from Hong Kong and then sold them back to China.
This is actually all Chinese companies back then. They did not import foreign technology, usually through a joint venture, and then they try their best to reverse-engineer it and start making it themselves. It is quite clear that Huawei has done exactly this. During its first few years, it had 500 people working in R&D and only 200in production. It should come as no surprise that one of Ren's first customers was the Chinese Army, whose leader convinced him that owning your own telecommunications hardware was a matter of national security. When government contracts started coming in, there was a regular supply of government money, which was not credited to Varsha.
Instead, he invested to expand Huawei's R&D and production capacity, sometimes operating losses to do so. In the market, Ren's priority was market share, so it exposed Ren's former employer as the largest telecommunications company in China, competitively pricing its products, exactly 10 years after its founding.
Now, there is much that has made Rain's company uniquely suited for rapid expansion.
To begin with, they adopted a somewhat similar structure of capitalist stakes, allowing us all to invest our employees in the company based on their performance. This was not only Ren's way of attracting talent, but maintaining it, although in the midst of a very short labor market at the time, Ren could apply some pretty good working standards. Huawei employees were subjected to long working hours and a toxic work environment, scheduled for 6 days a week from 9 a.m. to 9 p.m. In fact, in its early days, Huawei's offices were actually equipped with mattresses, as it was for employees to work late, sleep in the office, then wake up the next morning to continue working.
Almost fanatical and the dedication of its workforce allowed Huwaway to excel in a particular activity that spies corporate.
Now, Chinese theft from intellectual intelligence is nothing new, but Huawei took it to a new level. In 2003, for example, they copied over a million lines of code from a Cisco router, so they built their own product lines. Another example dates back to 2007, when a Motorola employee found out that he was sending IPs directly to Huawei executives. The nature of Huawei's behavior is indeed systemic, not least. Rather the company actually has an internal message board, where employees can share stolen contestant secrets and on the basis that their value may actually receive a bonus for them. Now, the number of allegations is very high that has been proved so far, but the amount we know is also a very weak picture. It is only Huawei's extreme dedication to competitive pricing that has allowed international customers to turn away from its reputation. For most customers overseas, the Huawei name was not fully recognizable, as recently as ten years ago.
Now, the fact that the US has any geopolitical incentive to keep Huawei is another question, but Huawei is doing itself no favors despite being so secretive. In some of his public statements, Ren stated that Huawei never received a request from the government to provide inappropriate information, but no one believed his words. Since under China's cyber security law, any Chinese company should provide the government with access to its data, so it is no surprise that the global community is skeptical. In addition, Huawei employees exempt ownership from more detailed public reports, which most other public multinationals also have to issue. It is very telling that, for a company that works globally, Huawei's management lacks a lot of diversity: all 17 board directors are Chinese, with no degrees from non-Chinese universities, and all of Huawei for 20 years. Are associated with.
All these factors are conspiring against Howie, but it is not yet clear whether politics will surpass economic stimulus for most of the world.
However, it is clear that online security is becoming an important aspect of modern life.
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