Light Reading

So Who Owns Huawei?

Ray Le Maistre

10:30 AM -- Among the many questions often asked about Huawei Technologies Co. Ltd. is: Who owns it?

The official answer is that it is a "private company wholly owned by its employees." The Chinese vendor runs an Employee Shareholding Scheme and, according to its latest annual report (published in April), 65,596 staff were engaged in the scheme at the end of 2011.

Now, there's no shortage of people who speculate (without evidence) that Huawei is owned by the Chinese government or even the Chinese army.

Far more interesting, though, is a recent report by Chinese business publication Caijing into the ways in which Huawei's employee share scheme has been working. The report was so interesting that copies of a recent issue were allegedly pulled from distribution only days after hitting the newsstands.

The full story about that, and what the Caijing report suggested, can be found in this Week in China article, No stranger to controversy.

Questions about Huawei's ownership will no doubt be raised numerous times in the coming months as investigations into the company by the House of Representatives' Intelligence Committee and the European Commission continue. (See More Chinese Whispers and Euronews: EC Sharpens Knives Over Huawei, ZTE.)

— Ray Le Maistre, International Managing Editor, Light Reading

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Vishnu Goel
Vishnu Goel,
User Rank: Light Sabre
12/5/2012 | 5:21:44 PM
re: So Who Owns Huawei?

The question of ownership is being raked due to Chinese Companies unprecedented success in Telecom and several other areas.Western NEMs have been outclassed by these upstarts.One of the point always raised is the origin and real backers of these. The fact is several of the Western Companies are taken over by Asian giants too. Like the wave of Japanese buying of Real Estate in the 90s,the telecom companies from China are dominating the scene,be it R&D,Localisation or ability to win Mega Contracts and usually Europeans are at the recieving end.I think we should concentrate on how We can compete,and outflank the Chinese Challenge, rather than who owns the majority shares? Globalisation always comes with the price tag! Vishnu Goel T&M +919810101238 

User Rank: Light Beer
12/5/2012 | 5:19:44 PM
re: So Who Owns Huawei?

The ownership of a company is less important than who controls it.  The question of who sets the strategic objectives of Huawei is less important than who profits financially from its success.

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