How Huawei Grew and Its Prospects in the US (WSJ)

The Wall Street Journal recently interviewed Chen Lifang, the senior vice president of Huawei Technology Co Ltd (SHE: 002502) – one of the largest global telecommunications players that’s largely unknown in the US. In fact, 65% of Huawei’s revenue now comes from outside of China but none from the US amid questions about network security.

In the interview, Chen Lifang was asked about Huawei’s formula for success with her response being:

If you ask me about the success factors, there are three. The first is we value R&D investment, technology and innovation. In the past 10 years, we invested $25 billion.

We really value management. When we were still very small, our CEO and founder, Ren Zhengfei, said, “We can learn. We should learn management experience from other companies.” So we invest heavily in management.

The third success factor is our employee shareholding mechanism. This enables employees to share the success of the company. We have 84,000 employees that have company shares. And the biggest shareholder is Mr. Ren, our founder. He only has 1.4% of the company shares.

When asked about entering the US market, she commented:

It will take longer than we’re used to taking in Europe and Asia. In the past, we didn’t have much communication in the U.S. People in the U.S. don’t know Huawei. We have to invest more time, let them know more about us.

To read the whole interview, The Secret of Huawei’s Success, go to the website of the Wall Street Journal

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