Like many tech firms of its size, Huawei’s campus is a model of efficiency and industry, with research and development (R&D) centres set in green landscaping, with water features and pleasing architecture.
The Chinese multinational company sells products to more than 140 countries, and by the end of last year served in excess of one third of the world’s population. It had revenues of 113.8 billion yuan (Dh68.61bn) in the first half of the year and is on track to increase revenues by 10 per cent this year in the full 12 months. The company expects to grow by 10 per cent every year, and it will do this without any mergers or acquisitions.
Here in Shenzhen, the company has 40,000, mostly young, employees, nearly three quarters of whom work in R&D. Shenzhen is a major city in the south of southern China’s Guangdong Province, situated immediately north of Hong Kong. The area became China’s first – and one of the most successful – special economic zones in 1979.
Inside the building known as the “White House”, the eager R&D technicians work on a range of technology – from dealing with extreme temperature drops to expanding mobile networks in cities and making smartphones faster, slimmer and better looking.
During a recent visit, there were demonstrations of cutting-edge technology, such as a container data solution whereby a company, local government or organisation can set up an entire data management system using solutions carried in containers.
Or big data storage like the Cloud Engine 12800, that can ship colossal amounts of data per second.
“In 16 years we have expanded from one country of operation – China – to 140,” said the international media relations chief Scott Sykes.
“Of the 66 per cent of revenues from outside China, 35 per cent come from Europe, Middle East and Africa.
“It’s important for people to know who we are and what our intentions are because of the two new businesses and because the relative strategic importance of telecoms has risen dramatically in the last decade,” he said.
New products, a driven workforce and rising revenues; but Huawei has a problem.
Last year, a report by the US house permanent select committee on intelligence (SCI) claimed that Huawei’s equipment posed a threat to national security.
In July, the former head of the US Central Intelligence Agency (CIA) and National Security Agency (NSA), Michael Hayden, said he believed Huawei Technologies was a significant security threat to the US, that it had spied for the Chinese government and that intelligence agencies had hard evidence of its activities.
And in October, Australia’s federal government decided to confirm a ban on Huawei supplying equipment to that country’s national broadband network.
The challenge Huawei faces is not innovation or creating the right products, but it must convince the world that it’s not spying on global communications for the Chinese government.
The company admits that it has had a problem with secrecy and hopes to tackle this by being transparent.
Huawei has produced a technical paper, penned by the company’s head of cyber-security, John Suffolk, who used to be the UK government’s chief information officer, called Cyber Security Perspectives: Making cyber security a part of a company’s DNA – A set of integrated processes, policies and standards.
The paper outlines the company’s information security program and structure, discusses its core governance principles and describes in detail how it oversees its suppliers, including its 400 US suppliers and thousands of international partners, that make up the supply chain.
Huawei’s critics suspect it is a front for the People’s Liberation Army (PLA), the military arm of the Communist Party of China, and believe that its equipment can be used to spy on other countries.
The suspicions surrounding Huawei are not plucked out of thin air.
In 2001, for example, the company said it had supplied equipment for the PLA’s first national telecoms network, which it reportedly maintained and upgraded.
The company founder Ren Zhengfei, a Communist Party member since 1978, was formerly in a PLA engineer, and he never gives interviews, at least until May this year, Mr Ren gave his first media interview to a group of New Zealand journalists, in which he said intense scrutiny from the United States over Huawei’s contracts with the Chinese government and the military was partially due to jealousy about the company’s success. He firmly denied any espionage links.
“Huawei has no connection to the cyber-security issues the US has encountered in the past, current and future … Huawei equipment is almost non-existent in networks currently running in the US. We have never sold any key equipment to major US carriers, nor have we sold any equipment to any US government agency,” he said.
Last month, the US senator Dianne Feinstein, the chairman of the SCI, and senator Robert Menendez, who leads the committee on foreign relations, sent a letter to the US defence secretary Chuck Hagel, the secretary of state John Kerry and James Clapper, the director of national intelligence. The policymakers expressed concern that Huawei’s involvement creates risks for the US-South Korea alliance, including for US troops based on the peninsula.
“Maintaining the integrity of telecommunications infrastructure is critical to the operational effectiveness of this important security alliance,” the two senators wrote on November 27 in the letter obtained by Bloomberg News.
“Reports that Huawei has been selected to develop and/or supply the Republic of Korea’s advanced LTE telecommunications backbone raise serious questions and potential security concerns.”
In response, the company said there was no basis for US scrutiny of its contract to supply broadband equipment for the project.
“Our gear is world-proven and trusted, connecting almost one-third of the world’s population,” said Scott Sykes, a spokesman for Huawei.
“The motivations of those that might groundlessly purport otherwise are puzzling.”
Walking through the exhibition space, we come across an intelligent video surveillance system where you can read the sign on a building 2km away. This is the slightly creepy side of the business that raises overseas’ eyebrows, but Huawei is hardly unique in providing this kind of equipment.
The company says the alleged spying issue hurts the whole industry, so it is not in its interest to try to gain political capital from it.
“We’ve been careful not to comment directly on that. On the one hand it has the potential to create a crisis in confidence in IT and telecoms equipment. We have done our best to be open and transparent. We publish what we think about cybersecurity. It’s right there. Because of our heritage and because of where we are headquartered, we’ve been challenged. The lack of trust is broadly about China, not specifically about Huawei, we get painted with that brush sometimes. We know that the bar is higher for us,” said Mr Sykes.
With two thirds of Huawei’s revenues from outside China, alienating overseas markets is not in the company’s interests, he said.
There are signs that the struggle to build in the US might be getting too much. Ren Zhengfei said in a recent interview with the French publication Les Echos that in order to avoid tensions between the US and China, Huawei has “decided to exit the US market, and not stay in the middle”.
This probably does not mean a complete withdrawal, but certainly a rethink of strategy.
Huawei started life in a grungy apartment building in the Wanyou district of downtown Shenzhen where the Chinese telecoms equipment firm began its life in 1987 with 10 employees and its first product was a PBX phone system.
Today, the building sports a grubby pair of voluminous underpants hanging out to dry, drawing chuckles from the visiting journalists. It is perhaps symbolic of the China’s efforts to become more transparent: no more dirty laundry.
business@thenational.ae
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
Killing of Qassem Suleimani
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
MORE FROM CON COUGHLIN
UAE currency: the story behind the money in your pockets
BUNDESLIGA FIXTURES
Saturday (UAE kick-off times)
Cologne v Union Berlin (5.30pm)
Fortuna Dusseldorf v Borussia Dortmund (5.30pm)
Hertha Berlin v Eintracht Frankfurt (5.30pm)
Paderborn v Werder Bremen (5.30pm)
Wolfsburg v Freiburg (5.30pm)
Bayern Munich v Borussia Monchengladbach (8.30pm)
Sunday
Mainz v Augsburg (5.30pm)
Schalke v Bayer Leverkusen (8pm)
More coverage from the Future Forum
match info
Southampton 0
Arsenal 2 (Nketiah 20', Willock 87')
Red card: Jack Stephens (Southampton)
Man of the match: Rob Holding (Arsenal)
MAIN CARD
Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka
Fight Night
FIGHT NIGHT
Four title fights:
Amir Khan v Billy Dib - WBC International title
Hughie Fury v Samuel Peter - Heavyweight co-main event
Dave Penalosa v Lerato Dlamini - WBC Silver title
Prince Patel v Michell Banquiz - IBO World title
Six undercard bouts:
Michael Hennessy Jr v Abdul Julaidan Fatah
Amandeep Singh v Shakhobidin Zoirov
Zuhayr Al Qahtani v Farhad Hazratzada
Lolito Sonsona v Isack Junior
Rodrigo Caraballo v Sajid Abid
Ali Kiydin v Hemi Ahio
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Profile
Name: Carzaty
Founders: Marwan Chaar and Hassan Jaffar
Launched: 2017
Employees: 22
Based: Dubai and Muscat
Sector: Automobile retail
Funding to date: $5.5 million
Structural%20weaknesses%20facing%20Israel%20economy
%3Cp%3E1.%20Labour%20productivity%20is%20lower%20than%20the%20average%20of%20the%20developed%20economies%2C%20particularly%20in%20the%20non-tradable%20industries.%3Cbr%3E2.%20The%20low%20level%20of%20basic%20skills%20among%20workers%20and%20the%20high%20level%20of%20inequality%20between%20those%20with%20various%20skills.%3Cbr%3E3.%20Low%20employment%20rates%2C%20particularly%20among%20Arab%20women%20and%20Ultra-Othodox%20Jewish%20men.%3Cbr%3E4.%20A%20lack%20of%20basic%20knowledge%20required%20for%20integration%20into%20the%20labour%20force%2C%20due%20to%20the%20lack%20of%20core%20curriculum%20studies%20in%20schools%20for%20Ultra-Othodox%20Jews.%3Cbr%3E5.%20A%20need%20to%20upgrade%20and%20expand%20physical%20infrastructure%2C%20particularly%20mass%20transit%20infrastructure.%3Cbr%3E6.%20The%20poverty%20rate%20at%20more%20than%20double%20the%20OECD%20average.%3Cbr%3E7.%20Population%20growth%20of%20about%202%20per%20cent%20per%20year%2C%20compared%20to%200.6%20per%20cent%20OECD%20average%20posing%20challenge%20for%20fiscal%20policy%20and%20underpinning%20pressure%20on%20education%2C%20health%20care%2C%20welfare%20housing%20and%20physical%20infrastructure%2C%20which%20will%20increase%20in%20the%20coming%20years.%3C%2Fp%3E%0A
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Indian construction workers stranded in Ajman with unpaid dues
Score
Third Test, Day 1
New Zealand 229-7 (90 ov)
Pakistan
New Zealand won the toss and elected to bat
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Results:
6.30pm: Maiden Dh165,000 2,000m - Winner: Powderhouse, Sam Hitchcott (jockey), Doug Watson (trainer)
7.05pm: Handicap Dh165,000 2,200m - Winner: Heraldic, Richard Mullen, Satish Seemar
7.40pm: Conditions Dh240,000 1,600m - Winner: Walking Thunder, Connor Beasley, Ahmed bin Harmash
8.15pm: Handicap Dh190,000 2,000m - Winner: Key Bid, Fernando Jara, Ali Rashid Al Raihe
8.50pm: The Garhoud Sprint Listed Dh265,000 1,200m - Winner: Drafted, Sam Hitchcott, Doug Watson
9.25pm: Handicap Dh170,000 1,600m - Winner: Cachao, Tadhg O’Shea, Satish Seemar
10pm: Handicap Dh190,000 1,400m - Winner: Rodaini, Connor Beasley, Ahmed bin Harmash
The specs: 2019 BMW X4
Price, base / as tested: Dh276,675 / Dh346,800
Engine: 3.0-litre turbocharged in-line six-cylinder
Transmission: Eight-speed automatic
Power: 354hp @ 5,500rpm
Torque: 500Nm @ 1,550rpm
Fuel economy, combined: 9.0L / 100km
Six tips to secure your smart home
Most smart home devices are controlled via the owner's smartphone. Therefore, if you are using public wi-fi on your phone, always use a VPN (virtual private network) that offers strong security features and anonymises your internet connection.
Keep your smart home devices’ software up-to-date. Device makers often send regular updates - follow them without fail as they could provide protection from a new security risk.
Use two-factor authentication so that in addition to a password, your identity is authenticated by a second sign-in step like a code sent to your mobile number.
Set up a separate guest network for acquaintances and visitors to ensure the privacy of your IoT devices’ network.
Change the default privacy and security settings of your IoT devices to take extra steps to secure yourself and your home.
Always give your router a unique name, replacing the one generated by the manufacturer, to ensure a hacker cannot ascertain its make or model number.
ITU Abu Dhabi World Triathlon
Zimbabwe v UAE, ODI series
All matches at the Harare Sports Club:
1st ODI, Wednesday, April 10
2nd ODI, Friday, April 12
3rd ODI, Sunday, April 14
4th ODI, Tuesday, April 16
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
Student Of The Year 2
Director: Punit Malhotra
Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal
1.5 stars
The National photo project
Chris Whiteoak, a photographer at The National, spent months taking some of Jacqui Allan's props around the UAE, positioning them perfectly in front of some of the country's most recognisable landmarks. He placed a pirate on Kite Beach, in front of the Burj Al Arab, the Cheshire Cat from Alice in Wonderland at the Burj Khalifa, and brought one of Allan's snails (Freddie, which represents her grandfather) to the Dubai Frame. In Abu Dhabi, a dinosaur went to Al Ain's Jebel Hafeet. And a flamingo was taken all the way to the Hatta Mountains. This special project suitably brings to life the quirky nature of Allan's prop shop (and Allan herself!).
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
