The founder of the Chinese telecom giant Huawei, Ren Zhengfei, is 78 years old. His daughter Meng Wanzhou follows in his footsteps. The 51-year-old is a controversial figure – especially in the US.
A politically sensitive personnel decision is pending at the top of the Chinese telecom giant Huawei, which could have an impact on the difficult relationship with the United States. The daughter of the company founder, CFO Meng Wanzhou, who was once targeted by the US judiciary, is to take over the rotating chairmanship of the group on April 1 for the first time. Informed circles reported to the German Press Agency in Beijing that a successor plan for the 78-year-old CEO Ren Zhengfei should be initiated. The company itself denied the representation and emphasized that it would stick to the proven “collective management model”.
A further rise of the 51-year-old at the top of the company could increase the considerable political reservations in the USA against Huawei. According to press reports, US President Joe Biden is currently considering tightening sanctions against the company. Huawei could be denied access to semiconductors from key US suppliers like Qualcomm or Intel. The US claims threats to national security.
But Beijing sees the sanctions as an attempt by rival USA to slow down China’s technological and political rise in the world. “External attempts to suppress and contain China are escalating,” said Premier Li Keqiang on Sunday at the opening of the annual session of the People’s Congress in Beijing. In order to stand up more on its own feet in the face of headwinds, China is pushing ahead with technological innovation by any means necessary.
Arrested in Canada in 2018
The daughter of the charismatic Huawei founder gained dubious international prominence at the end of 2018. At the request of the US judiciary, the chief financial officer was arrested in Canada on charges of bank fraud to circumvent sanctions against Iran. The tug-of-war escalated into drama right from the start when two Canadians were arrested on suspicion of espionage in China. Diplomats spoke of “hostage politics”.
The top manager was held under loose house arrest in Vancouver for three years and fought against extradition to the United States. In September 2021, after a deal with US prosecutors – in return for the release of the two Canadians – Meng Wanzhou was able to return to her homeland, where she was hailed as a heroine. The chapter was only closed last December when US prosecutors dropped the case as agreed.
Without giving a date, Huawei confirmed when asked that Meng Wanzhou would become rotating chairman for six months this year “in accordance with our well-known governance structure”. In the previous year, the manager had already become the third executive for the rotating chairmanship, alongside Eric Xu and Ken Hu, who “primarily” run the company, it said.
USA: Risk of espionage or sabotage
A company spokesman emphasized that it was not about a succession plan. The founder and CEO Ren Zhengfei and the three rotating chairmen have “different roles”. The company has a well-developed internal governance structure in which all parts have clear authority and responsibility and “operate under mutual control”. “The fate of the company cannot be tied to a single individual and the governing bodies must follow the model of collective leadership.”
Despite all the adversities, the tech giant said it was “out of crisis mode” today. There is talk of a “new normal”. Sales were stable in 2022 at 636.9 billion yuan (about 86.08 billion euros at the end of 2022), after falling by 28.6 percent in the previous year. At the end of March, the annual results will be announced.
The USA justifies the sanctions with Huawei’s connections to Chinese authorities and warns of the danger of espionage or sabotage. Among other things, the group’s access to the US operating system Android was cut off, which weighed heavily on its smartphone business. The extent to which the business has inevitably changed was shown last week at the major mobile communications fair in Barcelona, where Huawei no longer presented any new smartphones.
Huawei firmly rejects the allegations. The telecom equipment supplier has been working with more than 1,500 network operators in more than 170 countries and regions for more than 30 years. “We have a proven track record in cybersecurity.” A discussion about network security is certainly necessary, but “an evaluation based on the country of origin” is “discriminatory”.
Huawei is also entering unfamiliar territory
“Fortunately, Germany has a fact-based approach,” Huawei said. But there is uncertainty among customers and responsible authorities in Germany, which must be dispelled in the “new normal”.
Pressure from the US is also leading Huawei to diversify its business faster than expected – into cloud services, industrial technical support and services. It also goes into unfamiliar terrain: cars, health, education, logistics and mining. A company spokesman emphasized that the Smart Manufacturing sector plays an important role in Germany in particular.
With his vision, founder Ren Zhengfei has turned the company from humble beginnings into a global corporation. The question is whether his daughter can fill in the big shoes. In the rivalry with the USA, Huawei would prefer not to be “a geopolitical player” – but simply a technology company. But the question remains whether Huawei can “defy geopolitical gravity,” as Chinese experts put it. (dpa)