Huawei: Fight Them With Innovation 华为欲借创新论低调进军美国市场

Huawei Technologies has given some of its first formal remarks since the latest rejection in its drive to enter the US, saying it will rely on innovation to finally break into this difficult market. The remarks, which came from one of the company’s top US officials late last week, sound neutral enough in theory, but really doesn’t do anything to address the main US concerns over security that have thwarted Huawei in the market so far. (English article; Chinese article) I do have to credit the official, a man named John Roese, with at least modifying Huawei’s previous style that was more direct and even slightly confrontational. A couple of weeks ago, the company was informed by the US telecoms regulator that it wouldn’t be allowed to bid for contracts to build government-operated emergency broadband networks, an outcome that surprised no one, and then made the situation worse by asking for an explanation. (previous post)  At least the company finally is letting someone who appears to be an American citizen be its spokesman, and it’s clear that he’s avoiding the sensitive topic of national security, which is the main reason for Huawei’s lack of progress in the market today. But for the company to ultimately succeed in the US, it will have to tackle this tough issue of security by demonstrating that it’s not an arm of the Chinese government, and that its products won’t be used for spying by Beijing. Roese’s “innovation” argument won’t do anything to address any of these concerns, but at least he’s showing that the company will probably take a more low-key approach to the situation in the future, which is needed in such a highly sensitive matter. I would look for the volume of behind-the-scenes communication between Huawei and US government officials to pick up considerably as part of this effort, though the company is unlikely to make any significant progress until after next year’s presidential elections in November.

Bottom line: Huawei is making a smart move by toning down its high-profile approach to enter the US, but is unlikely to gain access to the market until 2013 at the earliest.

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