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Huawei Technologies Co. Ltd.

(Chinese: ; Mandarin pronunciation: [xwawe]) is a Chinese multinational


networking and telecommunications equipment and services company headquartered in Shenzhen, uangdong,
China!
"#$
%t is the largest telecommunications equipment maker in the world, having overtaken &ricsson in '()'!
"*$
+uawei was ,ounded in )-.. /y e01military o,,icer 2en 3heng,ei and ,ormed as a private company owned /y
its employees! %ts core missions are /uilding telecommunications networks; providing operational and
consulting services and equipment to enterprises inside and outside o, China; and manu,acturing
communications devices ,or the consumer market!
"4$
+uawei has over )*(,((( employees, around *56 o,
whom are engaged in research and development (278)!
"5$"9$
%t has '( 278 institutes in countries including
China, the :nited States,
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ermany, Sweden, %reland, %ndia, 2ussia, and ;urkey,
"-$")($
and in '()) invested
around :S<#!9* /illion in 278!
"))$")'$
%n '()(, +uawei recorded pro,it o, '#!. /illion C=> (#!9 /illion :S8)!
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%ts products and services have /een
deployed in more than )*( countries and it currently serves *4 o, the world?s 4( largest telecoms operators!
")*$
Contents
"hide$
) +istory
o )!) &arly years
o )!' %nternational e0pansion
)!'!) :nited @ingdom
o )!# %nvestment and partnerships
o )!* 2ecent per,ormance
' Corporate a,,airs
o '!) Aeadership
o '!' Bwnership
# Croducts and services
o #!) ;elecom networks
o #!' lo/al services
o #!# Dscend smartphones and devices
* Competitive position
o *!) Sales
o *!' 2ecognition
4 Corporate social responsi/ility
5 Criticisms and controversies
o 5!) %ntellectual property rights
o 5!' Security concerns
o 5!# ;reatment o, work,orce and customers
9 See also
. 2e,erences
- Eurther reading
)( &0ternal links
[edit] History
+uawei ;echnology in Shenzhen, China
[edit] Early years
+uawei was ,ounded /y 2en 3heng,ei in )-.9, with an initial registered capital o, 2MF'),(((!
")4$
&sta/lished
in Shenzhen, +uawei started o,, as a sales agent ,or a +ong @ong company producing private /ranch e0change
(CFG) switches! Fy )--(, +uawei /egan its own independent research and commercialization o, CFG
technologies targeting hotels and small enterprises!
")5$
D,ter accumulating knowledge and resources on the CFG
/usiness, +uawei achieved its ,irst /reakthrough into the mainstream telecommunications market in )--', when
it launched its C7C(. digital telephone switch, which had the largest switching capacity in China at the time!
Fy initially deploying in small cities and rural areas, the company gradually gained market share and made its
way into the mainstream market!
")9$
%n )--*, +uawei esta/lished a long distance transmission equipment /usiness, and launched its own SB=&;
integrated access network, com/ining /road/and and narrow/and services in a single plat,orm, and S8+
product line! +uawei generated sales o, 2MF)!4 /illion in )--4, mainly derived ,rom rural markets in China!
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[edit] International expansion
%n )--9, +uawei won its ,irst overseas contract,
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providing ,i0ed1line network products to +ong @ong
company +utchison Hhampoa!
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Aater that year, +uawei launched its wireless SM1/ased products and
eventually e0panded to o,,er C8MD and :M;S! %n )---, the company opened a research and development
(278) center in Fangalore, %ndia to develop a wide range o, telecom so,tware!
")5$
Erom )--. to '((#, +uawei
contracted with %FM ,or management consulting, and underwent signi,icant trans,ormation o, its management
and product development structure! D,ter '(((, +uawei increased its speed o, e0pansion into overseas markets,
having achieved international sales o, more than :S<)(( million /y '(((
").$
and esta/lishing an 278 center in
Stockholm, Sweden! %n '((), +uawei esta/lished ,our 278 centers in the :nited States, divested non1core
su/sidiary Dvansys to &merson ,or :S<94( million and Ioined the %nternational ;elecommunications :nion
(%;:)! Fy '((', +uaweiJs international market sales had reached :S<44' million!
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%n '((* +uawei continued its overseas e0pansion with a contract to /uild a third1generation network ,or ;el,ort,
the 8utch mo/ile operator!
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;his contract, valued at more than <:S'4 million, was the ,irst such contract ,or
the company in &urope!
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%n '((4, +uaweiJs international contract orders e0ceeded its domestic sales ,or the ,irst time! +uawei signed a
lo/al Eramework Dgreement with Koda,one! ;his agreement marked the ,irst time a telecommunications
equipment supplier ,rom China had received Dpproved Supplier status ,rom Koda,one lo/al Supply Chain!
;he agreement esta/lished the terms and conditions ,or the supply o, +uawei?s solutions to any one o, the
Koda,one operating companies worldwide!
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+uawei also signed a contract with Fritish ;elecom (F;) ,or the
deployment o, its multi1service access network (MSD=) and ;ransmission equipment ,or F;?s ')st Century
=etwork (')C=), providing F; and the :@ telecommunications industry with some in,rastructure necessary to
support ,uture growth as these companies are multi vendor in,rastructure!
"')$
%n May '((., +uawei and Bptus developed a mo/ile innovation centre in Sydney, Dustralia, providing ,acilities
,or engineers to develop new wireless and mo/ile /road/and concepts into Lready ,or marketL products!
"''$
%n
'((., the company em/arked on its ,irst large1scale commercial deployment o, :M;SM +SCD in =orth Dmerica
providing ;&A:S?s new ne0t generation wireless network and Fell Canada with high1speed mo/ile access!
"'#$
+uawei delivered one o, the worldJs ,irst A;&M&CC commercial networks ,or ;eliaSonera in Bslo, =orway in
'((-! ;he company launched the world?s ,irst end1to1end )(( solution ,rom routers to transmission system
that same year, to help meet the rapid growth o, network tra,,ic and enhance router e,,iciency and relia/ility!
")5$
%n Nuly '()(, +uawei was included in the lo/al Eortune 4(( '()( list pu/lished /y the :!S! magazine Fortune
,or the ,irst time, on the strength o, annual sales o, :S<')!. /illion and net pro,it o, :S<'!59 /illion!
"'*$
%n late
'()( it was reported that +uawei is planning to invest around :S<4(( million (2s ','(( crore) to set up a
telecom equipment manu,acturing ,acility in ;amil =adu, %ndia and <:S)(( million to e0pand its 278 center
in Fangalore!
"'4$"'5$
[edit] United Kingdom
%n Bcto/er '()', it was announced that +uawei would move its :@ headquarters to reen Cark, 2eading,
Ferkshire!
"'9$
[edit] Inestment and partnerships
+uawei has ,ocused on e0panding its mo/ile technology and networking solutions through a num/er o,
partnerships! %n March '((#, +uawei and #Com Corporation ,ormed a Ioint venture company, #Com1+uawei
(+#C), which ,ocused on the 278, production and sales o, data networking products! ;he company later
divested a *-6 stake in +#C ,or :S<..( million in '((5! %n '((4, +uawei /egan a Ioint venture with Siemens,
called ;8 ;ech, ,or developing #M ;81SC8MD mo/ile communication technology products! ;he :S<)((
million investment gave the company a *-6 stake in the venture, while Siemens held a 4)6 stake!
")5$
%n '((9,
a,ter =okia and Siemens co1,ounded =okia Siemens =etworks, Siemens trans,erred all shares it held in ;8
;ech to =okia Siemens =etworks! Dt present, =okia Siemens =etworks and +uawei hold 4)6 and *-6 shares
o, ;8 ;ech respectively!
"'.$
%n '((5, +uawei esta/lished a Shanghai1/ased Ioint 278 center with Motorola to develop :M;S technologies!
")5$
Aater that year, +uawei also esta/lished a Ioint venture with ;elecom Kenezuela, called %ndustria &lectronica
Brinoquia, ,or research and development and sale o, telecommunications terminals! ;elecom Kenezuela holds a
546 stake while +uawei holds the remaining #46 stake!
"'-$
+uawei and Dmerican security ,irm Symantec announced in May '((9 the ,ormation o, a Ioint1venture
company to develop security and storage solutions to market to telecommunications carriers! +uawei owns 4)6
o, the new company, named +uawei Symantec %nc! while Symantec owns the rest! ;he Ioint1venture is /ased in
Chengdu!
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rameenphone Atd! and +uawei won the reen Mo/ile Dward at the SMD Mo/ile Dwards '((-!
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%n March
'((-, the Hima0 Eorum announced ,our new mem/ers to its Foard o, 8irectors including ;homas Aee, the
Kice 8irector o, the %ndustry Standards 8epartment at +uawei!
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%n '((., +uawei launched a Ioint venture with :@1/ased marine engineering company, lo/al Marine Systems,
to deliver undersea network equipment and related services!
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[edit] !ecent per"ormance
%n Dpril '()), +uawei announced an earnings increase o, #(6 in '()(, driven /y signi,icant growth in overseas
markets, with net pro,it rising to 2MF'#!95 /illion (:S<#!5* /illion; O'!'# /illion) ,rom 2MF).!'9 /illion in
'((-!
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%n '()( sales outside China continued to /e the main driver o, +uaweiJs /usiness! Bverseas revenue
rose #*6 to 2MF)'(!*) /illion in '()( ,rom 2MF-(!(' /illion in '((-, ,ueled /y regions including =orth
Dmerica and 2ussia! 2evenues ,rom China rose -!96 to 2MF5*!99 /illion, as the country?s /ig telecom
operators reduced their investment last year!
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+uawei?s revenues in '()( accounted ,or )4!96 o, the <9.!45 /illion glo/al carrier1network1in,rastructure
market, putting the company second /ehind the )-!56 share o, ;ele,on DF A!M! &ricsson, according to market1
research ,irm artner!
"#4$
+uawei is targeting a revenue o, <)4( million through its enterprise /usiness solutions in %ndia in ne0t )'
months! %t denied using Chinese su/sidies to gain glo/al market share a,ter /eing recently accused /y :S
lawmakers and &: o,,icials o, un,air competition!
"#5$"#9$
[edit] Corporate a""airs
+uawei classi,ies itsel, as a LcollectiveL and does not re,er to itsel, as a private company! 2ichard Mcregor,
author o, The Party: The Secret World of China's Communist Rulers, said that this is La de,initional distinction
that has /een essential to the company?s receipt o, state support at crucial points in its development!L
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Mcregor argued that L+uawei?s status as a genuine collective is dou/t,ul!L
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[edit] Leadership
2en 3heng,ei is the president o, +uawei and has held the title since )-..!
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+uawei disclosed its list o, /oard
o, directors ,or the ,irst time in '()(! Ms! Sun >a,ang is chairwoman o, the /oard! Ds o, '()), the mem/ers o,
the Foard o, 8irectors
"*($
are Ms! Sun >a,ang,
"*)$"*'$
Mr! uo Cing, Mr! Gu 3hiIun, Mr! +u +oukun,
"*#$
Mr! 2en
3heng,ei,
"**$
Mr! Gu Henwei, Mr! Ai Nie, Mr! 8ing >un, Ms! Meng Hanzhou, Ms! Chen Ai,ang,
"*4$
Mr! Han
Fiao, Mr! 3hang Cingan, and Mr! >u Chengdong!
"*($
;he mem/ers o, the Supervisory Foard are Mr! Aiang +ua,
Mr! Ceng 3hiping, Mr! 2en Shulu, Mr! ;ian Eeng, and Mr! 8eng Fiao!
"*5$
[edit] #wnership
Ds o, '()) +uawei has not pu/lished a corporate structure /reakdown! 2ichard Mcregor, author o, The
Party: The Secret World of China's Communist Rulers, said that L"m$ost shares are /elieved to /e owned /yL
2en 3heng,ei and 2en?s managers!
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[edit] $roducts and serices
+uawei is organized around three core /usiness segments:
)! ;elecom =etworks, /uilding telecommunications networks;
'! lo/al Services, o,,ering glo/al equipment, operational services, and
3. consulting services ,or enterprise customers; and 8evices, manu,acturing electronic communications
devices!
"4$
%n addition to its three core /usinesses, +uawei launched its &nterprise /usiness in '()( to provide network
in,rastructure, ,i0ed and wireless communication, data center, and cloud computing solutions ,or glo/al
telecommunications customers!
"*9$
+uawei has stated that it aims to increase enterprise sales to :S<* /illion in
'()) and <)4 /illion within three to ,ive years!
"*.$"*-$
Ds o, the start o, '()(, appro0imately .(6 o, the world?s top 4( telecoms companies work with +uawei!
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Crominent partners include F;,
"4)$
Koda,one,
"4'$"4#$
Motorola,
"4*$"44$
Erance ;elecom,
"45$
;1Mo/ile, ;alk ;alk,
Cortugal ;elecom, Co0 Communications, Fell Canada, and Clearwire!
"4($
%n May '()), +uawei was awarded a
contract with &verything &verywhere, the :@Js /iggest communication company, to enhance its ' network!
;he ,our1year deal is +uawei?s ,irst mo/ile network deal in the :@!
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[edit] Telecom networ%s
+uawei o,,ers a variety o, network technologies and solutions to help telecommunications operators e0pand the
capacity o, their mo/ile /road/and networks! +uaweiJs core network solutions o,,er mo/ile and ,i0ed
so,tswitches, plus ne0t1generation home location register and %nternet Crotocol Multimedia Su/systems (%MS)!
+uawei assists content service providers looking to migrate ,rom copper to ,i/er with solutions that support
08SA, passive optical network (CB=) and ne0t1generation CB= (= CB=) on a single plat,orm! ;he company
also o,,ers mo/ile in,rastructure, /road/and access and service provider routers and switches (SC2S)! +uaweiJs
so,tware products include service delivery plat,orms (S8Cs), FSSs, 2ich Communication Suite and digital
home and mo/ile o,,ice solutions!
"4.$
%n '()(, revenues ,or ;elecom =etworks were :S<).!9- /illion!
"4-$
[edit] &lo'al serices
+uawei lo/al Services provides telecommunications operators with equipment to /uild and operate networks
as well as consulting and engineering services to improve operational e,,iciencies!
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;hese include network
integration services such as those ,or mo/ile and ,i0ed networks; assurance services such as network sa,ety; and
learning services, such as competency consulting!
"4.$
%n '()(, +uawei won *9 managed services contracts to help improve network per,ormance and e,,iciency ,or
customers, as well as reducing the costs o, network operations and maintenance!
"5($
%n '()( +uawei?s glo/al
services revenues grew '.!56 to :S<*!.' /illion!
"5)$
+uawei &''( +S8CD :SF modem
[edit] (scend smartphones and deices
+uawei?s 8evices division provides white1la/el products to content service providers, including :SF modems,
wireless modems, em/edded modules, ,i0ed wireless terminals, wireless gateways, set1top /o0es, mo/ile
handsets and video products!
"5'$
+uawei also produces and sells a variety o, devices under its own name, such as
the %8&BS smartphones and ta/let CCs! 2ecent products include :..((, :..5(, &''(, Dscend, :94)-,
+uawei Mercury M..5, and :.)4(! %n '()(, +uawei 8evices shipped )'( million devices around the world!
"4$

#( million cell phones, o, which #!# million units were smartphones, were shipped to markets such as Napan, the
:nited States and &urope!
"5#$
[edit] Competitie position
+uawei ;echnologies Co Atd, is the world?s largest telecom equipment maker
"*$"5*$
and ChinaJs largest
telephone1network equipment maker!
"54$
Ds o, '((., +uawei ranked ,irst in terms o, glo/al market share in the
mo/ile so,tswitches market,
"55$
tied with Sony &ricsson ,or lead market share in mo/ile /road/and cards /y
revenue,
"59$
ranked second in the optical hardware market,
"5.$
stayed ,irst in the %C 8SADM market,
"5-$
and ranked
third in mo/ile network equipment!
"9($
%n '((-, +uawei was ranked =o! ' in glo/al market share ,or radio
access equipment!
"9)$
%n addition, +uawei was the ,irst vendor to launch end1to1end (&'&) )(( solutions,
ena/ling operators to esta/lish enhanced ultra1/road/and networks, improving their service and simpli,ying
their network architecture!
"9'$"9#$
Dccording to the Horld %ntellectual Croperty Brganization (H%CB) on '9 Nanuary '((-, +uawei was ranked as
the largest applicant under H%CB?s Catent Cooperation ;reaty (CC;), with ),9#9 applications pu/lished in '((.!
Bverall, the total num/er o, international patent ,ilings under H%CB?s CC; ,or '((. represents the highest
num/er o, applications received under the CC; in a single year and China improved its ranking /y one place, to
/ecome the si0th largest user o, the CC;, with 5,(.- ,ilings!
"9*$
Ds o, Ee/ruary '()), +uawei has applied ,or
*-,(*( patents glo/ally and has /een granted )9,954 to date!
"94$
[edit] )ales
+uawei?s glo/al contract sales ,or '((5 reached :S<)) /illion (a #*6 increase ,rom '((4), 546 o, which came
,rom overseas markets!
"95$"99$
Fy the end o, '((., glo/al contract sales o, +uawei ;echnologies, China?s largest
telecoms gear maker, Iumped *5 percent to :S<'#!# /illion!
"9.$
+uawei e0perienced sales e0ceeding :S<#(
/illion in '((-,
"9.$"9-$
and glo/al sales increased /y '* percent to ).4!' /illion yuan in '()(!
".($
[edit] !ecognition
+uawei ;echnologies was one o, si0 telecom industry companies included in the Horld?s Most 2espected '((
Companies list compiled /y Eor/es magazine in May '((9!
".)$
%n 8ecem/er '((., BusinessWeek magazine
included +uawei in their inaugural list o, L;he Horld?s Most %n,luential CompaniesL!
".'$
%n '()( Fast Company ranked +uawei the ,i,th most innovative company in the world!
".#$
;he same year,
+uawei received three honors at the lo/al ;elecom Fusiness %nnovation Dwards including Lreen /ase station
innovationL, LHholesale network innovationL and LConsumer voting innovationL awards with Koda,one, F;
and ;alk;alk, respectively!
".*$
%n '()( Erost 7 Sullivan recognized +uawei as the '()( S8M &quipment Kendor
o, the >ear
".4$
and in the contact center application market with the '()( Dsia Caci,ic rowth Strategy
Aeadership Dward!
".5$
Bn '- Nuly '()(, +uawei was recognized /y Fritish ;elecom with Fest in Class ')C=
Solution Maturity, Kalue, Service and %nnovation award, ,or its innovation and contri/ution in ')C= and =e0t
eneration Dccess proIect!
".9$
Dlso in '()( The Economist recognized +uawei with its Corporate :se o,
%nnovation Dward!
"..$
%n May '()) +uawei won two awards at the A;& Horld Summit '()) ,or PSigni,icant
Crogress ,or a Commercial Aaunch o, A;& /y a KendorQ and PFest A;& =etwork &lements!Q Ds o, May '()),
+uawei has deployed over )(( Single2D= commercial networks, which are capa/le o, evolving into A;&, and
o, those that have deployed Single2D= networks, more than *( operators have announced the launch or the
imminent launch o, distinct A;& services!
".-$
2ichard Mcregor, author o, The Party: The Secret World of China's Communist Rulers, said that +uawei is
Lperhaps China?s most glo/ally success,ul companyL!
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[edit] Corporate social responsi'ility
Ds part o, its international support ,or technology and telecommunications education and training, +uawei has
contri/uted ,unding and equipment to a num/er o, universities and training centers in countries such as @enya,
"-($
%ndia,
"-)$
%ndonesia,
"-'$"-#$
Fangladesh,
"-*$
and =igeria!
"-)$
%n the :!S!, since '((., +uawei has sponsored M%;Js
Communications Eutures Crogram, a research colla/oration that studies the ,uture o, the telecommunications
industry!
"-4$"-5$"-9$
%n '()(, +uawei Ioined the Froad/and Commission ,or 8igital 8evelopment, ,ormed /y the %;: and :=&SCB
to support /road/and deployment to developing nations!
"-.$"--$")(($
%n the same year, +uawei Ioined the reen
;ouch consortium, an industry group that aims to make communications networks )((( times more energy
e,,icient than they are today!
")()$
%n Nune '()), +uawei signed a ,ive1year agreement to contri/ute donated services, equipment and technical
e0pertise worth over :S<)!* million to Carleton :niversity, in Bttawa, Canada, to esta/lish a research la/
dedicated to cloud computing technology and services!
")('$
;he same month, +uawei pu/lished its '()(
Corporate Social 2esponsi/ility (CS2) 2eport!
")(#$")(*$
[edit] Criticisms and controersies
[edit] Intellectual property rights
%n Ee/ruary '((# Cisco Systems sued +uawei ;echnologies ,or allegedly in,ringing on its patents and illegally
copying source code used in its routers and switches!
")(4$
Dccording to statement /y Cisco, /y Nuly '((* +uawei
removed the contested code, manuals and command1line inter,aces and the case was su/sequently dropped!
")(5$

Foth sides claimed success R with Cisco asserting that Lcompletion o, lawsuit marks a victory ,or the protection
o, intellectual property rightsL, and +uawei?s partner #Com (which was not a part o, lawsuit) noting that court
order prevented Cisco ,rom /ringing another case against +uawei asserting the same or su/stantially similar
claims!
")(9$
Dlthough Cisco employees allegedly witnessed counter,eited technology as late as Septem/er '((4,
")(.$
in a retrospective Cisco?s Corporate Counsel noted that LCisco was portrayed /y the Chinese media as a
/ullying multi1national corporationL and Lthe damage to Cisco?s reputation in China outweighed any /ene,it
achieved through the lawsuitL!;
")(-$
however the same article that quoted the remarks o, the Corporate Counsel
also notes the remarks o, Nay +oenig o, +ill and Dssociates, a security and risk management consultancy, who
encouraged ,oreign companies to take greater advantage o, civil litigation and said that it was hard to make the
argument that China?s civil system was ine,,ectual i, litigants did not pursue all o, the legal remedies availa/le
to them!
")(-$
+uawei?s chie, representative in the :S su/sequently claimed that +uawei had /een vindicated in the case,
/reaking an con,identiality clause o, +uawei?s settlement with Cisco! %n response Cisco revealed parts o, the
independent e0pert?s report produced ,or the case which proved that +uawei had stolen Cisco code and directly
copied it into their products!
"))($
%n Nune '((*, a +uawei employee was caught a,ter hours diagramming and photographing circuit /oards ,rom a
competitor /ooth at the SuperComm tradeshow!
")))$
;he employee denied the accusation, /ut was later
dismissed!
"))'$"))#$
%n Nuly '()(, Motorola ,iled an amended complaint that named +uawei as a co1de,endant in its case against
Aemko ,or alleged the,t o, trade secrets!
"))*$"))4$
;he case against +uawei was su/sequently dropped in Dpril
'())!
"))5$"))9$")).$
%n Nanuary '()), +uawei ,iled a lawsuit against Motorola to prevent its intellectual property
,rom /eing illegally trans,erred to =okia Siemens =etworks (L=S=L) as part o, =S=Js :S<)!' /illion
acquisition o, Motorola?s wireless network /usiness!
"))-$")'($")')$")''$
%n Dpril '()), Motorola and +uawei entered
into an agreement to settle all pending litigation,
"))9$")'#$")'*$
with Motorola paying an undisclosed sum to +uawei
,or the intellectual property that would /e part o, the sale to =S=!
")'4$")'5$")'9$
%n a ,urther move to protect its intellectual property, +uawei ,iled lawsuits in ermany, Erance and +ungary in
Dpril '()) against 3;& ,or patent and trademark in,ringement!
")'.$")'-$")#($
;he ,ollowing day, 3;& countersued
+uawei ,or patent in,ringement in China!
")#)$")#'$
[edit] )ecurity concerns
%n the :S, +uawei has /een challenged due to concerns o, :nited States security o,,icials that +uawei1made
telecommunications equipment is designed to allow unauthorized access /y the Chinese government and the
Chinese Ceople?s Ai/eration Drmy,
")##$")#*$")#4$")#5$
given that 2en 3heng,ei, the ,ounder o, the company, served as
an engineer in the army in the early )-.(s!
")#9$
%n the :nited @ingdom, the Conservative Carty raised concerns
a/out security over +uaweiJs /id ,or Marconi in '((4,
")#4$
and the company?s equipment was mentioned as an
alleged potential threat in a '((- government /rie,ing /y Dle0 Dllan, chairman o, the Noint %ntelligence
Committee!
")#.$
%n 8ecem/er '()(, +uawei opened a Cy/er Security &valuation Centre to test its hardware and
so,tware to ensure they can withstand growing cy/er security threats!
")#-$")*($
%n the :!S!, some mem/ers o,
Congress raised questions a/out the company?s proposed merger with communications company #Com in '((.,
")*)$
and its /id ,or a Sprint contract in '()(!
")#9$
%n addition, +uawei withdrew its purchase o, #Aea, systems in
'()(, ,ollowing a review /y the :!S! Committee on Eoreign %nvestment (CE%:S)!
")#*$
%n a '()) open letter, +uawei stated that the security concerns are Pun,ounded and unprovenQ and called on the
:!S! government to investigate any aspect o, its /usiness!
")*'$")*#$
;he :S1/ased non1pro,it organization Dsia
Society carried out a review o, Chinese companies trying to invest in the :!S!, including +uawei! ;he
organization ,ound that only a ,ew investment deals were /locked ,ollowing un,avora/le ,indings /y the CE%:S
or had /een given a recommendation not to apply, however all large transactions had /een politicized /y groups
including the :!S! media, mem/ers o, Congress and the security community!
")**$"dead link$
+owever, another article
unrelated to the report pu/lished /y the Dsia Society reported that, L,ear that the C!2!C! government could
strongarm private or una,,iliated Chinese groups into giving up cy/er1secrets is re,lected in the :!S!
government?s treatment o, Chinese telecom company +uawei!L
")*4$
%n Bcto/er '((-, the %ndian 8epartment o, ;elecommunications reportedly requested national telecom operators
to Lsel,1regulateL the use o, all equipment ,rom &uropean, :!S! and Chinese telecoms manu,acturers ,ollowing
security concerns!
")*5$
&arlier, in '((4, +uawei was /locked ,rom supplying equipment to %ndia?s Fharat Sanchar
=igam Aimited (FS=A) cellular phone service provider!
")*9$
%n '()(, the %ndian Central Fureau o, %nvestigation
(CF%) insisted on cancelling the rest o, the +uawei contract with FS=A and pressed charges against several top
FS=A o,,icers regarding their Ldou/t,ul integrity and du/ious links with Chinese ,irmsL!
")*.$")*-$
%n Nune '()(, an interim solution was introduced that would allow the import o, Chinese1made telecoms
equipment to %ndia i, pre1certi,ied /y international security agencies such as CanadaJs &lectronic Har,are
Dssociates, :S1/ased %n,oguard, and %sraelJs DA;DA Security Consulting!
")4($
%n Bcto/er '()), the Wall Street Journal reported that +uawei had /ecome %ran?s leading provider o,
telecommunications equipment, including monitoring technologies that could /e used ,or surveillance!
")4)$

+uawei responded with a statement claiming the story misrepresented the company?s involvement: LHe have
never /een involved and do not provide any services relating to monitoring or ,iltering technologies and
equipment anywhere in the worldL!
")4'$
%n 8ecem/er '()), Bloomer! reported that the :!S! is invoking Cold Har1era national security powers to ,orce
telecommunication companies including D;7; %nc! and Kerizon Communications %nc! to divulge con,idential
in,ormation a/out their networks in a hunt ,or Chinese cy/er1spying, with 2ichard Ealkenrath, a senior ,ellow in
the Council on Eoreign 2elations Cy/ercon,lict and Cy/ersecurity %nitiative, saying, P;his is /eyond vague
suspicions!!!Congress is now looking at this as well, and theyJre doing so /ased on very speci,ic material
provided them in a classi,ied setting /y the =ational Security Dgency!L ;he action represents a concern that
China and other countries may /e using their growing e0port sectors to develop /uilt1in spying capa/ilities in
:!S! networks! ;he :!S! +ouse Cermanent Select Committee on %ntelligence said it would investigate potential
security threats posed /y some ,oreign companies, and mentioned +uawei speci,ically! D spokesman ,or
+uawei said that the company conducts its /usinesses according to normal /usiness practices and actually
welcomed the investigation!
")4#$
%n '((), it was alleged that +uawei ;echnologies %ndia had developed telecommunications equipment ,or the
;ali/an in D,ghanistan, and newspapers reported that the %ndian government had launched a pro/e into the
,irm?s operations!
")4*$")44$
+uawei responded, stating that the company did not have Lany link with the ;ali/anL,
as its only customers are telecommunications carriers
")45$
and its ,acilities Lalways operate according to :!=!
rules and the local laws o, each countryL!
")49$
Bn )4 8ecem/er '((), the %ndian authorities announced that they
had not ,ound any evidence that +uawei %ndia had any connection to the ;ali/an,
")4.$""erification needed$
although
speculation to the contrary has persisted in the :!S!
")4-$
%n March '()', Dustralia media sources reported that the Dustralian government had e0cluded +uawei ,rom
tendering ,or contracts with =F= Co, a government1owned corporation that is managing the construction o, the
=ational Froad/and =etwork,
")5($
,ollowing advice ,rom the Dustralian Security %ntelligence Brganisation
regarding security concerns!
")5)$
;he Dttorney1eneral?s 8epartment stated in response to these reports, L;he
=ational Froad/and =etwork is the largest nation1/uilding proIect in Dustralian history, and will /ecome the
/ack/one o, DustraliaJs in,ormation in,rastructure! Ds such, and as a strategic and signi,icant government
investment, we have a responsi/ility to do our utmost to protect its integrity and that o, the in,ormation carried
on it!L
")5'$
%n Nuly '()', Eeli0 Ainder and regor @op, gave a con,erence at 8e,con to announce that they uncovered
several critical vulnera/ilities in +uawei routers (models D2). and D2'-)!
")5#$
;he vulnera/ilities could /e used
to get a remote access to the device! Bne o, the distur/ing points o, the con,erence was that researchers could
not warn +uawei a/out these vulnera/ilities /e,ore the con,erence /ecause it Ldoesn?t have a security contact
,or reporting vulnera/ilities, doesn?t put out security advisories and doesn?t say what /ugs have /een ,i0ed in its
,irmware updatesL! Ds a result, the vulnera/ilities have not /een pu/licly disclosed! +uawei replied that they
were investigating the claims!
")5*$
Bn . Bcto/er '()', a :S +ouse %ntelligence Committee panel issued a report descri/ing +uawei as a Lnational
security threatL due to its alleged ties to various Chinese governmental agencies! ;he panel?s report suggested
that +uawei should L/e /arred ,rom doing /usiness with the :S governmentL, and additionally alleged that the
telecom manu,acturer had committed Lpotential violationsL related to immigration, /ri/ery, corruption, and
copyright in,ringement!
")54$
+owever, a su/sequent Hhite +ouse1ordered review ,ound no concrete evidence to
support the +ouse report?s espionage allegations
"5#$
although the review ,ound that relying on +uawei was risky
,or other reasons, such as the presence o, vulnera/ilities that hackers could e0ploit!
"5#$
Dn article in 2euters
wrote that, Lpreviously unreported ,indings support parts o, a landmark :!S! congressional report last week that
warned against allowing Chinese companies +uawei and 3;& Corp to supply critical telecom in,rastructure!L
"5#$
Bn - Bcto/er '()', a spokesman ,or Canadian Crime Minister Stephen +arper indicated that the Canadian
government invoked a national security e0ception to e0clude +uawei ,rom its plans to /uild a secure
government communications network!
")55$
Bn '4 Bcto/er '()', a 2euters report
"5#$
wrote that according to documents and interviews, an %ranian1/ased
seller o, +uawei (Soda ostar Cersian Kista) last year tried to sell em/argoed Dmerican antenna equipment
(made /y Dmerican company (Dndrew AAC) to an %ranian ,irm (M;= %rancell)! Speci,ically, the Dndrew
antennas were part o, a large order ,or +uawei telecommunications gear that M;= %rancell had placed through
Soda ostar, /ut the M;= %rancell says it canceled the deal with +uawei when it learned the items were su/Iect
to sanctions and /e,ore any equipment was delivered!
"5#$
Kic uyang, a +uawei spokesman, acknowledged that
M;= %rancell had canceled the order; 2ick Dspan, a spokesman ,or CommScope, said the company was not
aware o, the a/orted transaction!
"5#$
[edit] Treatment o" wor%"orce and customers
D :!S! Drmy Strategic Studies %nstitute report on Drgentina pu/lished in Septem/er '((9 descri/es +uawei as
Lknown to /ri/e and trap clients!L ;he report details un,air /usiness practices, such as customers ,ramed /y
L,ull1paid tripsL to China and monetary LpresentsL o,,ered and later used /y +uawei as La ,orm o, e0tortion!L
")59$
Dccording to a HikiAeaks ca/le, in '((5, Michael Noseph, then1C&B o, Sa,aricom Atd, allegedly struggled to
cancel a contract with +uawei due to poor a,ter1sales e0perience, a,ter which the @enyan government pressured
him to reinstate the contract!
")5.$
Hhen questioned regarding this incident, Noseph replied, P%t "the ca/le$ is not a
re,lection o, the truth as evidenced /y Sa,aricom /eing a maIor purchaser o, +uawei products including all #,
switching and the recent BCS /illing system upgraded over the weekend!Q
")5-$
Dccording to the HikiAeaks
ca/le, ;elkom @enya?s C&B Sammy @irui stated, Lthe Chinese always do well in government contractsL!
")9($
%n May '()(, it was reported in the Times of #ndia, that security agencies in %ndia /ecame suspicious o, Chinese
+uawei employees a,ter learning that %ndian employees allegedly did not have access to part o, +uawei?s
Fangalore research and development (278) o,,ice /uilding!
")9)$
+uawei responded that the company employs
over ',((( %ndian engineers and Iust #( Chinese engineers in the 278 center in Fangalore, and L/oth %ndian
and Chinese sta,, have equal access rights to all our in,ormation assets and ,acilitiesL!
")9'$
Dccording to the
Times of #ndia, the intelligence agencies also noted that Chinese employees o, +uawei had e0tended their stay
in Fangalore ,or many months!
")9)$
+uawei stated that many o, these employees were on one1and1a1hal,1year
international assignments to serve as a technical /ridge /etween in1market teams and China, and that Lall the
Chinese employees had valid visas and did not overstayL!
")9#$
%n Bcto/er '((9, 9,((( +uawei employees resigned and were then rehired on short1term contracts, there/y
apparently avoiding the unlimited contract provisions o, China?s new Aa/our Contract Aaw, the Aa/our Contract
Aaw o, the Ceople?s 2epu/lic o, China! ;he company denied it was e0ploiting loopholes in the law, while the
move was condemned /y local government and trade unions!
")9*$")94$
+uawei?s treatment o, its work,orce in uangdong Crovince, Southern China also triggered a media outcry a,ter
a '41year1old so,tware engineer, +u Ginyu, died in May '((5 ,rom what is /elieved to have /een Le0treme
,atigue caused /y overworkL, according to a report /y CFC =ews! ;he cause o, death listed /y the hospital was
/acterial encephalitis!
")95$")99$
%n its '()( Corporate Social 2esponsi/ility report, +uawei highlighted the importance o, employee health and
sa,ety! %n '()(, +uawei provided annual health checks to all ,ull1time employees and per,ormed #,'(( checks
to employees e0posed to occupational health risks!
Milestones
*ear +,--
:nveiled the igaSite and solution :'=et architecture!
Fuild '( cloud computing data centers!
Shipped appro0imately '( million smartphones!
Dcquired Symantec?s shares in +uawei Symantec at :S<4#( million!
&sta/lished the '()' Aa/oratories!
Aaunched the +:DH&% SmartCare service solution!
2eceived si0 top A;& awards!

*ear +,-,
8eployed over .( Single2D= networks among which '. were commercial A;&M&CC networks
&sta/lished its Cy/er Security &valuation Centre in the :@
Signed a Koluntary reen Dgreement with the China Ministry o, %ndustry and %n,ormation ;echnology
(M%%;)
Noined the := Froad/and Commission ,or 8igital 8evelopment
Dwarded theL'()( Corporate :se o, %nnovation DwardL /y ;he &conomist

*ear +,,.
2anks =o!' in glo/al market share o, radio access equipment
Success,ully delivers the world? s ,irst A;&M&CC commercial network ,or ;eliaSonera in Bslo =orway
Aaunches the world? s ,irst end1to1end )(( solution ,rom routers to transmission system
2eceives L'((- Corporate DwardL ,rom %&&& Standards Dssociation(%&&&1SD)
2eceives the Einancial ;imes? Drcelor Mittal Foldness in Fusiness award ,or per,ormance in and
contri/ution to emerging markets and ranks the ,i,th most innovative company in the world /y East
Company
Dchieves a year1on1year decrease o, more than '(6 in resource consumption /y +uawei?s main
products; deploys over #,((( sites powered /y alternative energies around the world

*ear +,,/
2ecognized /y FusinessHeek as one o, the world? s most in,luential companies
2anks =o! # /y %n,orma in terms o, worldwide market share in mo/ile network equipment
Eirst large scale commercial deployment o, :M;SM+SCD in =orth Dmerica, ,or ;&A:S and Fell
Canada
2anks =o! ) /y DF% in mo/ile /road/and devices having shipped over '( million units
Aargest applicant under H%CB?s Catent Cooperation ;reaty (CC;), with ),9#9 applications pu/lished in
'((.; accounts ,or )(6 o, A;& patents worldwide

*ear +,,0
&sta/lishes Ioint venture with Symantec, to develop storage and security appliances
&sta/lishes Ioint venture with lo/al Marine, to provide end1to1end su/marine network solutions
D partner to all the top operators in &urope at the end o, '((9
Hon '((9 lo/al Supplier Dward /y Koda,one! Has the only network equipment supplier to /e awarded
this speci,ic accolade
:nveils its DAA %C EMC solutions strategy designed to leverage distinct /ene,its ,or telecom carriers,
,rom ;CB savings to reduced energy consumption

*ear +,,1
8ivests *- percent stake in +#C ,or :S8..( million
&sta/lishes Shanghai1/ased Ioint 278 Center with Motorola to develop :M;S technologies
%ntroduced new visual identity (K%)! ;he new K% re,lects our principles o, customer1,ocus, innovation,
steady and sustaina/le growth, and harmony!

*ear +,,2
%nternational contract orders e0ceed domestic sales ,or the ,irst time
Selects as a pre,erred telecoms equipment supplier and signs lo/al Eramework Dgreement with
Koda,one,
Selects as a pre,erred ')Century =etwork (')C=) supplier /y Fritish ;elecom (F;) to provide multi1
service network access (MSD=) components and optical transmission equipment

*ear +,,3
&sta/lishes Ioint venture with Siemens to develop ;81SC8MD solutions
Dchieves ,irst signi,icant contract win in &urope valued at over :S8'4 million with 8utch operator,
;el,ort

*ear +,,4
&sta/lishes Ioint venture with #Com ,ocusing on enterprise data networking solutions

*ear +,,+
%nternational market sales reaches :S844' million

*ear +,,-
8ivests non1core su/sidiary Dvansys to &merson ,or :S894( million
&sta/lishes ,our 278 centers in the :nited States
Noins %nternational ;elecommunications :nion (%;:)

*ear +,,,
&sta/lishes 278 center in Stockholm, Sweden
:S8)(( million generates ,rom international markets

*ear -...
&sta/lishes 278 centre in Fangalore, %ndia, which achieves CMM level1* accreditation in >ear '(()
and CMM level14 accreditation in >ear '((#

*ear -..0
Aaunches wireless SM1/ased solutions
&0pands into metropolitan areas o, China in >ear )--.

*ear -..2
enerates sales o, 2MF)!4 /illion in >ear )--4, mainly derived ,rom rural markets in China

*ear -..+
%nitiates 278 and launches rural digital switching solution

*ear -..,
&m/arks on independent research and commercialization o, CFG technologies targeting hotels and
small enterprises

*ear -./0
&sta/lishes in Shenzhen with as sales agent ,or +ong @ong company producing Crivate Franch
&0change (CFG) switches
5ision
;o enrich li,e through communication!
6ission
;o ,ocus on our customers? market challenges and needs /y providing e0cellent %C; solutions and
services in order to consistently create ma0imum value ,or our customers!
Core 5alues
Bur core values are deeply rooted in every aspect o, our /usiness! ;hey are the internal driving ,orce ,or
the company and are our commitments to the ecosystem!
;hese values ena/le us to provide e,,ective services to our customers and to achieve our vision o,
Lenriching li,e through communicationL!
Customers Eirst
+uawei e0ists to serve customers, whose demands are the driving ,orces /ehind our development! He
continuously create long1term value ,or customers /y /eing responsive to their needs and requirements!
He measure our work against how much value we /ring to customers, /ecause we can only succeed
through our customers? success!
8edication
He win customers? respect and trust primarily through dedication! ;his includes every e,,ort we make to
create value ,or customers and to improve our capa/ilities! He value employees? contri/utions and
reward them accordingly!
Continuous %mprovement
Continuous improvement is required ,or us to /ecome /etter partners ,or our customers, improve our
company and grow as individuals! ;his process requires that we actively listen and learn in order to
improve!
Bpenness 7 %nitiative
8riven /y customer needs, we passionately pursue customer1centric innovations in an open manner! He
/elieve that /usiness success is the ultimate measure o, the value o, any technology, product, solution or
process improvement!
%ntegrity
%ntegrity is our most valua/le asset! %t drives us to /ehave honestly and keep our promises, ultimately
winning our customers? trust and respect!
;eamwork
He can only succeed through teamwork! Fy working closely in /oth good times and /ad, we lay the
,oundation ,or success,ul cross1cultural colla/oration, streamlined inter1departmental cooperation and
e,,icient processes!
)trategy
;o adapt to the revolutionary changes that are taking place in the in,ormation industry, +uawei is
making strategic adIustments to /etter serve its customers! +uawei has e0tended the reach o, its
innovative o,,erings ,rom the telecom carrier network ,ield to the enterprise and consumer ,ields! ;o this
end, we have coordinated the development o, the Lcloud1pipe1deviceL /usiness and put considera/le
resources towards providing large capacity and intelligent in,ormation networks, a variety o, smart
devices, as well as new1generation /usiness plat,orms and applications to o,,er users an e,,icient,
environmentally ,riendly, and innovative in,ormation1/ased e0perience! +uawei will remain ,ocused on
customer needs as we continue to innovate, openly cooperate with partners, and deepen our commitment
to providing telecom carriers, enterprises, and consumers with integrated solutions, products, and
services! He will also continue to enhance the user e0perience, create ma0imum value ,or our
customers, enrich li,e through communication, and improve work e,,iciency!

Carrier 7etwor% 8usiness


+uawei provides telecom carriers with uni,ied plat,orms, consistent e0periences, and ,le0i/le Single
solutions! ;hese solutions support the transmission and e0change o, data tra,,ic over carrier networks,
help carriers simpli,y networks, achieve smooth evolutions, and implement end1to1end integrations
while ena/ling rapid deployments, streamlining operations, and reducing network CDC&G and BC&G!
+uawei ,ully aligns its pro,essional service solutions with carrier strategies, in a move to /etter position
carriers to complete seamless evolutions, improve user e0periences, /oost operating e,,iciency, increase
revenue, and ultimately achieve e0cellent /usiness results!
Enterprise 8usiness
Hith its ,ocus on %C; in,rastructures, +uawei continuously drives innovations /ased on requirements
raised /y customers ,rom ,inance, energy, power, transportation, governments, pu/lic utilities, and other
industries! Fy providing %C; products and solutions that can /e easily integrated /y our partners,
+uawei helps enterprise customers improve the e,,iciency o, their communication, work, and production
systems while reducing their operating costs!
Consumer 8usiness
+uawei will continue to ,ocus on consumers and ,ully utilize our carrier, distri/utor, and e1commerce
channels to /uild +uawei into one o, the most in,luential glo/al /rands ,or devices! He strive to /ring
consumers a simple and enIoya/le user e0perience through mo/ile %nternet applications! Moreover,
+uawei customizes and manu,actures devices according to the speci,ic needs o, telecom carriers to help
them develop their /usiness and achieve success!
%n addition, +uawei will leverage its e0pertise in networks, cloud computing, and ,uture1oriented
converged solutions ,or personal and household applications and apply that knowledge to the production
o, a ,ull range o, devices! He will continue our commitment to Lopenness, cooperation, and innovationL
as we /uild solid and cooperative relationships with operating system providers, chip suppliers, content
providers, and other partners to ,orm a complete and sound device ecosystem!
Dspectos ,inacieros destacados
!esearch 9 :eelopment
He have over 5',((( product and solution 278 employees, which comprise more than **6 o, +uawei?s total
employees worldwide! He have set up '# research centers in ermany, Sweden, the :@, Erance, %taly, 2ussia,
%ndia, China, and other countries! %n addition, we have esta/lished #* Ioint innovation centers with top carriers
to trans,orm leading technologies into competitive advantages and /usiness success ,or our customers!
Ds o, '()), +uawei had ,iled #5,#** patent applications in China, )(,54( under the Catent Cooperation ;reaty
(CC;), and )(,-9. patent applications overseas! He have /een awarded '#,4'' patent licenses, -(6 o, which
are invention patents! Hith regard to cloud computing technologies, +uawei possesses 5.4 patents in China,
''5 in &urope, and )(9 in the :S! +uawei has played a maIor role in standards development in cloud
computing and is one o, the 8M;E?s )* /oard mem/ers! %n addition, +uawei led the esta/lishment o, the
D28M work group in the cloud computingMdata center sector ,or the %&E; and has served as the chair ,or the
group! +uawei also e0tensively participates in cloud computing standards organizations!
+uawei supports mainstream international standards and contri/utes to the ,ormulation o, such standards! Fy
the end o, '()), +uawei had Ioined )#( industry standards organizations, such as the #CC, %&;E, %;:, BMD,
&;S%, %&&&, and #CC'! %n total, +uawei su/mitted more than '.,((( proposals to these standards
organizations and has served as a /oard mem/er ,or BMD, CCSD, &;S%, D;%S, and numerous other
authoritative organizations in which it holds more than ).( positions!
%n '()), +uawei was awarded si0 top A;& awards ,rom around the glo/e which served as the industry?s
a,,irmation o, our continued investment and signi,icant contri/utions to the research and development o, A;&
technology, commercial practices, standard patents, integration o, the industry chain, and other areas!
+uawei?s 278 e0penses totaled C=>'#,5-5 million in '()), and the company has spent accumulatively over
C=>)(( /illion on 278 over the last decade!