huawei Board of Directors Background Guide CAHSMUN XIX Letter from the Director Dear members of the Huawei Board of Directors and Supervisory Board, My name is David Xia, and I am currently a senior at St. George’s School. My Chairs Lawrence Li and Harry Zhu constitute the rest of your Dais. At this iteration of CAHSMUN, I will join you as a non-voting director of Huawei Technologies Co., Ltd. Model United Nations has been a rocky territory for me. The activity undoubtedly has its weaknesses, such as overbearing complexities and inherent politics. However, from time to time, I find myself reinvigorated by sparks of joy, and I am behooved to seize them. Most notably, I realize that MUN can be a platform to propel transparency and justice. This committee, unique to CAHSMUN, is an opportunity for delegates to apply the concept of justice in the geopolitical and business spheres. I spend the most of my time by my piano to experiment with playing classical music in jazz. You can also expect to find me binge-watching Sidemen videos, trying to convince others that NIO is better than Tesla, ending arguments by using Pyrrhonist skepticism, and writing a poem a day before bed. Above all, I most treasure finding connections between seemingly disparate fields. Perhaps, it is that goal of finding harmony that brings me to peace. Huawei will undoubtedly serve as a challenge for many of you, but fret not. I am beyond certain that this committee will be fruitful for all to grasp a better understanding of rhetoric, geopolitics, business, and spontaneous thinking. Prepare well, and please feel free to reach out to the Dais team at huawei@cahsmun.org. Lawrence, Harry, and I wish you all the best. See you soon! David Xia Director of Huawei Technologies Co., Ltd. — CAHSMUN 2023 Committee Description Huawei Technologies Co., Ltd. is a Shenzhen-based multinational technology corporation. With approximately 195,000 employees, the company works to provide accessible information and communications technology (ICT) infrastructure to over three billion people worldwide.1 Figure 1: A snapshot of Huawei’s fundamental statistics. 2 Huawei is an employee-owned company. Of the shares of Huawei’s holding company, Huawei Investment & Holding, approximately 1% of shares fall under Ren Zhengfei, the founder, while a trade union committee controls the remainder.3 The company’s governance organization comprises a Board of Directors and Supervisory Board. The Board of Directors is Huawei’s decision-making body that is responsible for corporate strategy, operations management, and customer satisfaction. It also is responsible for preserving the interests of customers and shareholders. The Supervisory Board acts as the organ of insight on behalf of shareholders. Its members oversee the company’s survival, development, and long-term goals.4 This committee is set in the present day, and you serve either on Huawei’s Board of Directors or Supervisory Board. Delegates are responsible for the everyday decision-making of this multinational enterprise, with issues ranging from pursuing globalization, countering American-led accusations of security compromises, and offering the high quality, efficient telecommunications products and services to customers—whether individuals, corporations, or governments—worldwide. 1 https://www.huawei.com/en/corporate-information. Ibid. 3 NB: a trade union committee is not synonymous with a traditional trade union. Here, the union refers to a committee that represents the interests of the company’s employees. 4 https://www.huawei.com/en/corporate-governance. 2 Timeline 1978 — Deng Xiaoping’s Four Modernizations program—those of agriculture, industry, defence, and science and technology—is officially launched with the goal of reviving the Chinese economy.5 September 15, 1987 — Amidst the encouragement of innovation, Huawei Technologies Co., Ltd. is founded in Shenzhen by Ren Zhengfei, a former engineering officer in the People’s Liberation Army (PLA).6 1994 — Huawei lands an important contract with the PLA to build the first national telecommunications network.7 1999 — A research and development (R&D) centre is established in Bangalore, India.8 2000 — An R&D centre is opened in Stockholm, Sweden. 9 2001 — Four R&D centres are founded in the United States.10 2004 — Huawei obtains its first major contract—valued at over $2 million USD—in Europe with Dutch operator Telfort.11 2004 — Huawei signs a $10 billion USD credit line with China Development Bank to provide low-cost financing to customers buying its telecommunications equipment. This line of credit would triple to $30 billion USD in 2009.12 2005 — International sales exceed domestic sales for the first time.13 2005 — Huawei signs a Global Framework Agreement with Vodafone, a British multinational telecommunications company, and it selects Huawei as a preferred telecoms equipment supplier.14 2005 — Huawei signs a contract with British Telecom to provide multi-service network access (MSAN) components and optical transmission equipment, and it selects Huawei as a preferred 21Century Network (21CN) supplier.15 5 https://www.britannica.com/topic/Four-Modernizations. https://en.wikipedia.org/wiki/Huawei. 7 Ibid. 8 https://www.huawei.com/en/corporate-information. 9 Ibid. 10 Ibid. 11 Ibid. 12 https://phys.org/news/2019-05-huawei-key-beneficiary-china-subsidies.html. 13 Ibid. 14 Ibid. 15 Ibid. 6 2009 — Huawei debuts its first Android smartphone at the Mobile World Congress. 16 2010 — For the first time, Huawei is included in the Global Fortune 500 list published by Fortune for annual sales of $21.8 billion USD and net profit of $2.67 billion USD.17 2012 — Huawei partners with customers in 33 countries in cloud computing and builds the world’s largest desktop cloud system, used by around 70,000 employees every day.18 2013 — As a major facilitator of the European Union’s 5G projects and a founding member of the 5G Innovation Centre (5GIC) in the United Kingdom, Huawei releases a 5G white paper, builds a global 5G ecosystem, and carries out joint research with more than 20 universities worldwide.19 2013 — Honor is founded as a sub-brand of Huawei aimed at competing with other mid-range smartphones.20 2014 — Huawei establishes 5G technology R&D centers in nine countries, constructs 186 commercial networks globally using 400G core routers, builds more than 480 data centres, among which over 160 are cloud data centers. As well, Huawei is operating 45 global training centres while running over 20 service operation centres globally.21 2015 — Huawei remains as the top patent applicant for the second year in a row, with 3,898 applications, according to the World Intellectual Property Organization.22 2015 — Huawei’s long-term evolution (LTE) networks cover more than 140 capital cities.23 2015 — Huawei ships more than 100 million smartphones, ranking third in the 2015 global smartphone market and first in terms of market share in the Chinese smartphone market.24 2016 — Huawei supports the stable operations of more than 1,500 networks in over 170 countries and regions, while serving over one-third of the world’s population.25 2016 — Huawei’s Smart City solutions—a method for integrating planning, operations support, optimization, talent development, and project management—are in use in more than 100 cities in over 40 countries. Huawei drafts nine national standards for Smart Cities in China and serves more than 800 million people in more than 200 cities across over 80 countries and regions.26 16 https://www.cnet.com/tech/mobile/mobile-world-congress-2009-the-rumours-begin/. https://money.cnn.com/magazines/fortune/global500/2010/snapshots/11397.html. 18 Ibid. 19 Ibid. 20 https://en.wikipedia.org/wiki/Honor_(brand). 21 Ibid. 22 Ibid. 23 Ibid. 24 Ibid. 25 Ibid. 26 Ibid. 17 2017 — Huawei releases the Mate 10, the first smartphone with an embedded artificial intelligence (AI) chipset.27 2018 — The U.S. Pentagon bans Huawei and ZTE (another Chinese telecommunications company) phone sales on military bases.28 2018 — Chief Financial Officer Meng Wanzhou is detained at the Vancouver International Airport by Canadian authorities on order by the United States alleging business deals amidst sanctions with Iran.29 2018 — The company surpasses $100 billion USD in annual revenue for the first time.30 2018 — Huawei surpasses Apple to become the second largest smartphone vendor in the world—after Samsung.31 2019 — Huawei is indicted for theft of trade secrets, wire fraud, and obstruction of justice by the U.S. Department of Justice.32 2019 — Huawei announces the Mate X, a foldable 5G smartphone.33 2019 — Against pressure from the U.S., German Chancellor Angela Merkel pushes forth with the rollout of Huawei’s 5G technologies in Germany.34 2019 — U.S. President Donald Trump signs an executive order that lays the groundwork for blocking Chinese telecommunications companies like Huawei, and the company receives a 90-day reprieve that allows them to continue business with American companies. 35 2019 — Over 700 cities and 228 Fortune Global 500 companies are partnered with Huawei on digital transformation.36 27 Ibid. https://www.cnet.com/news/pentagon-reportedly-bans-sale-of-huawei-and-zte-phones-on-us-military-bases/. 29 https://www.cnet.com/news/huawei-executive-arrested-by-canadian-officials-at-us-request/. 30 Ibid. 28 31 https://www.theguardian.com/technology/2018/aug/01/huawei-beats-apple-smartphone-manufacturer-samsung-ipho ne. 32 https://www.bbc.com/news/world-us-canada-47036515. 33 https://www.theverge.com/circuitbreaker/2019/10/23/20928258/huawei-mate-x-release-date-price-china. 34 https://www.bloomberg.com/news/articles/2019-03-19/merkel-takes-a-stand-against-u-s-pressure-to-bar-huawei-fro m-5g. 35 https://www.bis.doc.gov/index.php/all-articles/17-regulations/1555-addition-of-certain-entities-to-the-entity-list-fina l-rule-effective-may-16-2019. 36 Ibid. 2020 — Huawei attains over 1 billion connected Huawei devices globally and over 730 million Huawei smartphone users.37 2020 — Huawei becomes the world’s top smartphone seller.38 2021 — Huawei’s HarmonyOS, its own intelligent operating system launched in 2019, is deployed on more than 220 million devices, making it the world’s fastest-growing mobile device operating system.39 2021 — By the end of the third quarter, Huawei’s revenues drop 32% due to sanctions.40 2022 — By the end of the third quarter, Huawei’s revenues drop a further 19.7%.41 Today — This committee commences. Projects and Existing Products N.B. Delegates are encouraged to propose products and/or improvements based on some or all of the links provided. Please brainstorm innovations upon reviewing the flagship products’ specifications. It is expected that delegates have at least a basic understanding of Huawei’s flagship products. Consumer Smartphones including: Mate 50 Pro (part of the Mate series, which is often positioned for early adopters), P50 Pro Pocket (part of the P series, which is the mainstream, flagship line), nova 10 Pro (mid-tier), and Y9a (low-end). For the full smartphone product line and technical specifications, please visit: https://consumer.huawei.com/en/phones/. In 2013, Huawei founded the smartphone brand Honor, which was designed to compete with mid-range online brands and to elevate Huawei-branded phones as more premium. However, in 2020, to ensure the survival of the parent company Huawei after U.S. sanctions restricting the selling of American smartphone parts to Huawei, Honor was sold to a Shenzhen state-owned enterprise.42 To this day, many features of Huawei phones can still be seen in Honor devices even though the latter’s access to Huawei’s IP had been cut off. 43 37 Ibid. https://www.cnn.com/2020/07/30/tech/huawei-samsung-q2-hnk-intl/index.html. 39 Ibid. 40 https://www.barrons.com/news/huawei-revenue-down-2-2-in-first-three-quarters-of-2022-01666860609. 41 https://technode.com/2022/10/28/huawei-generates-19-95-billion-in-2022-q3-as-profit-falls/. 42 https://www.engadget.com/huawei-honor-sold-024435704.html. 43 https://www.wired.com/story/honor-huawei-smartphones-separation/. 38 Pioneering the 5G mobile standard, in 2022, Huawei held the highest market share of smartphones in China, whilst globally, the company now only accounts for 5.29%.44 45 This is still a sharp decline from the Q2 2020 global market share Huawei held of 20%—above Samsung (19.5%) and Apple (13.5%). 46 Laptops, Monitors, Desktops, and TVs including: MateBook X Pro, MateView GT, MateStation X, Vision S, business products like the MateBook B7 and MateStation B520. Laptops: https://consumer.huawei.com/en/laptops/. Monitors: https://consumer.huawei.com/en/monitors/. Desktops: https://consumer.huawei.com/en/desktops/. Products for businesses: https://consumer.huawei.com/en/business/products-and-solutions/. TVs: https://consumer.huawei.com/en/visions/s/. Tablets including: MatePad Pro, and MatePad Paper. Tablets: https://consumer.huawei.com/en/tablets/. Wearables and Headphones including: WATCH GT 3 Pro Titanium / WATCH GT 3 Pro Ceramic, TalkBand B6, Eyewear, FreeBuds Pro 2, FreeBuds Lipstick. Wearables: https://consumer.huawei.com/en/wearables/. Headphones: https://consumer.huawei.com/en/headphones/. Routers including: WiFi Mesh 7, WiFi AX3 Pro, 5G CPE Pro 2. Routers: https://consumer.huawei.com/en/routers/. Automobile: Aito M5 The Aito M5 is an all-electric, extended range crossover SUV developed by Seres, a subsidiary of Chongqing Sokon Industry Group, in collaboration with Huawei.47 Aito M5 uses Huawei’s HarmonyOS and DriveONE, a system that applies big data, cloud computing, and AI into EV drive control, battery safety, and fault detection.48 44 https://www.bankmycell.com/blog/smartphone-market-share-in-china. 45 https://www.oberlo.ca/statistics/smartphone-market-share#:~:text=Apple%20and%20Samsung%20dominate%20the, immensely%20popular%20in%20the%202000s. 46 https://www.statista.com/statistics/271496/global-market-share-held-by-smartphone-vendors-since-4th-quarter-2009 /. 47 https://www.huaweicentral.com/huawei-smart-selection-aito-m5-surpassed-6000-orders/. 48 https://digitalpower.huawei.com/en/DriveONE/. Software: EMUI 13 EMUI is a mobile operating system used on smartphones and tablets. It is derived from Android through the Android Open Source Project. Since the U.S. sanctions that bar American companies from doing business with Huawei were established, the company’s new EMUI smartphones have no longer been certified by Google, and they have lost access to the Google Mobile Services. As an alternative, Huawei released Huawei Mobile Services (e.g. the AppGallery to replace Google Play).49 Explore EMUI 13, the latest version: https://consumer.huawei.com/en/emui-13/. HarmonyOS 3 HarmonyOS is a distributed operating system whose interface is largely based on the Android-sourced EMUI. The latest iteration of the system allows for a smoother experience across Huawei devices like smartphones, tablets, smartwatches, printers, and automobiles. The HarmonyOS system is particularly prevalent in the Aito M5 through continuous AI learning optimization and upgrades. In 2022, Huawei also launched Petal Chuxing, a ride-hailing platform running on HarmonyOS.50 Currently, the HarmonyOS system is only available in the Chinese market. Explore HarmonyOS 3: https://www.harmonyos.com/en/. Enterprise Huawei’s Enterprise Business Group is concentrated on aiding different industries in adapting to an increasingly digital and AI-centric world. Using its Information and Communications Technologies (ICT) infrastructure, Huawei hopes to transform industries to foster a digital ecosystem that allows joint innovation, shared resources, and shared success. In fact, by the end of 2021, 267 Fortune Global 500 companies and over 700 cities globally have chosen Huawei as their preferred partner for digital transformation.51 By the same time, the company also released over 100 scenario-based solutions to problems across over ten industries.52 Some unique solutions offered in Huawei Enterprise include: Huawei Remote Medical Solution 49 https://www.theverge.com/2019/9/19/20873690/huawei-mate-30-series-phones-google-android-ban-apps-block. https://finance.yahoo.com/news/huawei-launches-updated-operating-system-093000179.html. 51 https://e.huawei.com/en/about/huawei-enterprise. 52 Ibid. 50 Operating on 4k and 5G technologies, Huawei’s remote medical solution aids in epidemic prevention and control. It offers remote commands, consultation, monitoring, medical teaching, and digital ward visits via a teleconference.53 Industry Operation Support Service Focusing on technical support, network optimization, and performance management, Huawei aids businesses in maintaining healthy ICT infrastructure—ranging from security measures to asset management.54 Areas that Huawei has served in achieving digital transformation include 50 of the world’s top 100 banks, 700+ intelligent cities, 1,700+ hospitals, 2,800+ universities and research institutes, 190+ electric power enterprises, 600+ intelligent campuses, 130,000+ km of railway lines, 2,200+ internet companies, 100+ airports, 6,000 manufacturing enterprises, 100 ports, 17 of the world’s top 20 oil and gas enterprises, 38,000+ km of oil and gas pipelines, and 300+ urban rail lines.55 Carrier Over three billion people in 170+ countries are connected through Huawei ICT infrastructure and other services. Huawei provides wireless networks, cloud core networks, fixed networks, software, and network energy solutions that are in turn deployed by telecommunications carriers across the globe. 5G Huawei is recognized as a global pioneer in widespread 5G infrastructure. From 2009 to 2013, the company poured over $600 million USD into 5G research. From 2017 to 2018, Huawei invested almost $1.4 billion USD into its product development.56 In 2019, Huawei’s communications technologies—through China Telecom’s 5G system—helped the Beijing Jishuitan Hospital perform the world’s first remote robotic surgery.57 5G’s uses are vast and can be applied in manufacturing, tourism, public transport, new media, education, logistics, and hotel management.58 For a full list of Carrier products and solutions, please visit: https://carrier.huawei.com/en/. 53 https://e.huawei.com/en/solutions/enterprise-collaboration/telemedicine. https://e.huawei.com/en/solutions/services/o-m-operation-support-service. 55 Ibid. 56 https://carrier.huawei.com/en/spotlight/5g. 57 https://carrier.huawei.com/en/success-stories/Industries-5G/Medical/beijing. 58 https://carrier.huawei.com/en/Industries-5G. 54 Current Situation Meng Wanzhou Extradition Case The U.S. government has always seen Huawei as a threat to its national security. In 2014, Edward Snowden reported that the US National Security Agency (NSA) had been operating a covert operation against Huawei since 2007. Snowden outlined how the NSA broke into internal systems, including Huawei’s headquarter’s networks and Ren Zhengfei’s communications.59 The major point of no return came on December 1, 2018, when following a New York warrant in August, Canadian police arrested Huawei’s Chief Financial Officer Meng Wanzhou at the order of the Trump administration. Consequently, Meng was facing extradition to the States. On December 10, Canadians Michael Kovrig and Michael Spavor were detained on grounds of espionage.60 On January 26, Canadian Ambassador to China John McCallum was fired by the Trudeau government after he declared that it would be “great for Canada” if the U.S. dropped the extradition request.61 Two days later, the Trump administration formally indicted Meng and Huawei with 13 counts of bank and wire fraud—as the American government claimed that Huawei had conducted technology sales to Iran, which was under sanctions by the U.S.—obstruction of justice, and misappropriation of trade secrets.62 On September 24, 2021, Meng reached a deferred prosecution agreement, in which she agreed to say that she made misleading statements to HSBC in order to transact business with Iran, but she did not have to plead guilty to the fraud charges.63 On the same day, she returned home to China, and soon after, all charges against her were dropped. The two Michaels are also allowed to return to Canada.64 Bans — American Accusations of Security Concerns In Europe, with American pressure, many governments are also gradually phasing out Huawei’s infrastructure. However, Europe has largely been hesitant toward American pressures as over 50% of 5G equipment in 31 European countries are from Chinese vendors, most notably Huawei.65 In the U.S. domestically, the Trump administration added Huawei to an export blacklist (called the Entity List) in 2019. President Biden is now using an even more aggressive approach in an effort to outcompete China’s rapid economic growth.66 Furthermore, Biden signed the CHIPS and Science Act, a $52.7 billion USD policy aimed at increasing research, supply chain independence, and semiconductor production in the United States. China has 59 https://www.nytimes.com/2014/03/23/world/asia/nsa-breached-chinese-servers-seen-as-spy-peril.html. https://www.cbc.ca/news/meng-wanzhou-huawei-kovrig-spavor-1.6188472. 61 Ibid. 62 https://www.bbc.com/news/world-us-canada-47036515. 60 63 https://www.theglobeandmail.com/politics/article-huaweis-meng-to-resolve-fraud-case-in-plea-deal-that-does-not-in clude/. 64 Ibid. 65 https://cepa.org/article/ban-huawei-not-europe/. 66 https://www.voanews.com/a/huawei-latest-target-of-us-crackdown-on-china-tech/6942032.html. criticized the Act as a tool similar to those employed during the Cold War. 67 European countries have also accused the Biden administration of protectionism as this Act lessens the competitiveness of European chips.68 Huawei, in response, is reported to be developing its own 12-nm and 14-nm chips with its design unit HiSilicon.69 Prior to 2020, Huawei had used its Kirin chip, but sanctions made that impossible since HiSilicon is a fabless semiconductor subsidiary of Huawei.70 However, the company has not released any official statement regarding the progress of their chip design. On a more global scale, all members of the Five-Eyes intelligence organization—U.S., Canada, U.K., Australia, and New Zealand—have now banned Huawei and ZTE, another major Chinese telecommunications company, from their 5G networks. Existing infrastructure must be removed.71 Germany, in particular, is resistant to U.S. pressure as 59% of 5G radio access network comes from Chinese vendors, of which Huawei holds the largest share, and the country alone accounts for 25% of European mobile consumers. Germany’s largest communications operator of such networks, Deutsche Telekom, maintains a strategic partnership with Huawei as the Germany government has opposed banning Huawei. Perhaps, after the United States and NATO pushed to sever German-Russian ties with the conflict in Ukraine and the Nord Stream pipeline sabotage, Germany does not want a repeat of energy woes in the field of communications—this time, with Huawei and ZTE.72 Macron’s France has also been resistant toward Biden’s pressures of banning Huawei. Though France has put in safeguards for the usage of Chinese vendors, the country has rejected banning the corporation altogether.73 The United Kingdom, on the other hand, has banned Huawei from gaining new contracts, and the government has ordered the removal of all of the company’s equipment and services, the deadline for which has been pushed back to the end of 2023 at the urging of British Telecom. The deadline for the removal of all Huawei 5G infrastructure is in 2027.74 67 https://www.asiafinancial.com/china-says-us-chip-act-will-harm-supply-chain-global-trade. 68 https://www.brookings.edu/techstream/bringing-economics-back-into-the-politics-of-the-eu-and-u-s-chips-acts-china -semiconductor-competition/. 69 https://www.npr.org/2022/05/20/1100324929/canada-bans-chinas-huawei-technologies-from-5g-networks. 70 https://www.hisilicon.com/en/about-us/company. 71 Ibid. 72 https://cepa.org/article/ban-huawei-not-europe/. 73 Ibid. 74 Ibid. Figure 2: Percentage of 5G radio access network infrastructure with Chinese vendors in major European countries.75 Huawei’s cloud services have also attracted foreign governments. As of 2021, there were about 70 agreements in 41 countries, 72% of which were from middle-income countries, such as Mexico and Malaysia.76 Huawei is also actively partnered with universities and research institutes worldwide. The company usually partakes in research programs and acts as a sponsor. In Canada, for example, the University of Toronto, University of British Columbia, McGill University, Carleton University, University of Calgary, and the University of Waterloo are among the roughly 20 higher-learning institutions partnered with Huawei. Even with the government’s ban on Huawei’s 5G equipment, these universities have no plans to sever ties with the company. For instance, the University of British Columbia reports that it received $6.3 million CAD in funding from Huawei in 2022 and engaged in 24 research projects with the company.77 75 76 Ibid. https://www.axios.com/2021/05/18/huaweis-cloud-services-find-government-buyers. 77 https://www.theglobeandmail.com/politics/article-huawei-still-benefits-from-canadian-university-research-despite-5 g-ban/. Alleged Connections with the People’s Liberation Army and Chinese Government Some sources claim that many Huawei staff, especially mid-level technicians, have associations with the Chinese government and the People’s Liberation Army. Huawei has been accused of being responsible for conducting espionage and counter-intelligence through the company’s products and networks. Hu Xijin, the editor-in-chief of the Global Times newspaper, has explained that it is a common phenomenon for ex-military personnel to join private companies like Huawei. Yet, many Western governments use these “dual positions” as part of the justification for banning Huawei.78 China and Huawei have unequivocally denied such allegations. Portfolio Overviews NB: (1) As this committee is a combination of two boards, delegates should feel free to discuss ideas that do not fully pertain to their positions. The success of the committee, in part, depends on the creativity of the delegates in acting as Huawei’s executives. This Portfolio Overviews section should only be a reference for the capabilities of each delegate. Specific initiatives and interests will not be discussed here as this is not a conventional committee. If there is not much description written for a certain portfolio, that means the scope of that individual’s position is broad, so there is more room for improvisation. (2) The three Rotating Chairs rotate in this capacity for one committee session each. When acting in this role, the delegate shares the “joint veto” power with the Chairman of the Board, which means that if both the Chairman of the Board and incumbent Rotating Chairman opt to reject a proposal, they have the authority to veto it—with approval from the Dais. Board of Directors Liang Hua (Howard Liang) – Chairman of the Board As the Chairman of the Board, Liang Hua is responsible for the successful running of the company. He is accountable for the shareholders of Huawei and consumers of its products. Specifically, Liang specializes in supply chain management. Xu Zhijun (Eric Xu) — Deputy Chairman of the Board, Rotating Chairman of Huawei Apart from his responsibilities as Deputy Chairman and Rotating Chairman, Xu Zhijun specializes in the marketing of Huawei’s products and services—both domestically in China and abroad. Hu Houkun (Ken Hu) — Deputy Chairman of the Board, Rotating Chairman of Huawei Hu Houkun presides over the globalization of the company, particularly regarding sales. Whether or not Huawei should embrace deglobalization and American protectionism is a question Hu should consider. 78 https://www.cnbc.com/2019/07/08/huawei-staff-and-chinese-military-have-deep-links-study-claims.html. Meng Wanzhou (Sabrina Meng) — Deputy Chairwoman of the Board, Rotating Chairwoman of Huawei, CFO Largely responsible for Huawei’s digital transformation and improved operations management, Meng Wanzhou is at the heart of debates surrounding the company. As the CFO, Meng is responsible for ensuring Huawei’s financial wellbeing. All monetary decisions must be approved by her. Wang Tao (David Wang) — Executive Director of the Board, Chairman of the Information and Communications Technology (ICT) Infrastructure Managing Board, President of the Enterprise Business Group, and Chairman of the Investment Review Board As chairman of the ICT Infrastructure Managing Board, Wang Tao is in charge of a major component of Huawei’s business. He is responsible for connecting with enterprises to establish the company’s ICT networks. As Chairman of the Investment Review Board, all investments undertaken by Huawei must be approved by Wang. Yu Chengdong (Richard Yu) — Executive Director of the Board, CEO of the Consumer Business Group, CEO of the Intelligent Automotive Solution Business Unit, Director of the Investment Review Board for Smart Devices and Intelligent Automotive Components As the CEO of the Consumer Business Group, Yu Chengdong leads the product line of mobile devices, laptops, wearables, and other consumer devices. Whether or not the Consumer Business Group should still be a focus of the company is a question to consider for Yu. As the CEO of the Intelligent Automotive Solution Business Unit, Yu is also responsible for the development of Huawei’s relatively new automotive sector. Xu Wenwei (William Xu) — Director, Chair of the Scientist Advisory Committee As the Chair of the Scientist Advisory Committee, Xu Wenwei can point out technical boundaries of proposals made. Research and development of projects requiring scientific and engineering efforts are to be passed by Xu. He Tingbo (Teresa He) — Director, President of HiSilicon, President of Technology of the 2012 Laboratories, Chair of Huawei Scientist Committee As the President of HiSilicon, He Tingbo is uniquely responsible for the development of Huawei’s own chips following U.S. bans—should the committee pursue this path. The development of confidential projects also requires the approval of He. Ren Zhengfei — Founder, Director, CEO Ren Zhengfei is not just the founder and CEO of Huawei, but he is also the central figure tying the company together. As the CEO, Ren’s engineering background positions him to be able to lead Huawei to continue its path as a technological superpower. In the Board of Directors, Ren is also responsible for convincing the Chairmen of his proposals and any that he deems important. Tao Jingwen — Director, President of the Quality, Business Process, and IT Management Department Tao Jingwen is responsible for the high standards of quality that Huawei sets in its consumer, enterprise, and carrier products and services. Tao is the point of contact should users and governments find faults in the company’s offerings. Li Jianguo — Director, President of the Manufacturing Department As the President of the Manufacturing Department, Li Jianguo is most focused on the company’s ability to manufacture its own materials even amid current geopolitical tensions or, if the Board pleases, the company’s ability to establish a global supply chain. Peng Bo (Vincent Peng) — Director, Vice President of the Public Affairs and Communications Department, President of the Corporate Communications Department As the President of the Corporate Communications Department, Peng Bo serves as a point of contact for enterprises. It is Peng’s responsibility to ensure that Huawei increases its network in enterprises and that it secures the partnerships Huawei deems necessary. Supervisory Board Guo Ping — Chairman of the Supervisory Board As the Chairman of the Supervisory Board, Guo Ping is responsible for the overall business strategy of the company. Additionally, Guo is able to suspend members—for a time decided by the Dais—should he justify an instance of ethical misconduct. He can also issue reprimands as he sees fit. Ding Yun (Ryan Ding) — Deputy Chairman of the Supervisory Board, President of the Corporate Leadership Management Department, President of the Enterprise Business Group, President of the Carrier Business Group As the President of the Corporate Leadership Management Department, Ding Yun serves as the voice of unity within the company. Ding is responsible for ensuring that the company’s trajectory is clear and followed by every member of the committee. Chen Lifang (Catherine Chen) — Executive Member of the Supervisory Board, President of the Public Affairs and Communications Department, and Corporate Senior Vice President As the President of the Public Affairs and Communications Department, Chen Lifang is the public relations voice of Huawei. At the end of every committee session, Chen Lifang will be required to summarize that session’s proposals to the press—which, for the most part, consists of the Dais. Yao Fuhai — Executive Member of the Supervisory Board, Chief Supply Chain Officer, Director of the Group Procurement Management Committee As the Chief Supply Chain Officer, Yao Fuhai is responsible for the preservation and efficiency of Huawei’s supply chain. Yao is to respond to all potential disruptions to the supply chain, including geopolitical reasons and those beyond human control—like the COVID-19 pandemic. Li Yingtao — Executive Member of the Supervisory Board, President of Administration of the 2012 Laboratories As the President of 2012 Laboratories, the rather secretive general research organization of the company, Li Yingtao is the senior-most member in research and development (R&D) at Huawei. Major new research project proposals are to be reviewed by him. Song Liuping — Member of the Supervisory Board, Chief Legal Officer, Chief Compliance Officer Song Liuping, as the Chief Legal Officer, is responsible for preventing Huawei from entering legal disputes, and should they arise, defending the company and resolving the crisis. As the Chief Compliance Officer, Song is accountable toward financial and political authorities to ensure the legal and ethical running of the company. Ren Shulu (Steven Ren) — Member of the Supervisory Board, Chief Logistics Officer As the Chief Logistics Officer, Ren Shulu is responsible for the management of staff and the supply chain to ensure the smooth operation of the company. Ren is responsible for coordinating projects to ensure they are delivered on time and cost-efficiently. Yang Li — Member of the Supervisory Board, Chief Ethics & Compliance Officer, Director of the Committee of Ethics and Compliance As the Chief Ethics & Compliance Officer, Yang Li is responsible for assessing the ethical behaviour of members of both boards. He is able to issue reprimands when he considers them necessary. Discussion Questions 1. How will Huawei navigate the worst case scenario of complete deglobalization? Can Huawei survive off domestic sourcing of parts? 2. Should consumer products still be a focus for Huawei? How does this sector compare with the company’s other Business Groups? 3. How valuable is ending the China-U.S. trade war for Huawei’s business? Is attempting to re-enter markets where it is currently banned or being banned worth it? 4. What new areas of communication (or industries) should Huawei explore? New partnerships? 5. What are the merits and drawbacks of pursuing a relationship with the Chinese government? Additional Resources Huawei’s 2021 Annual Report (refer to document pages 150-151 for an assessment of risks): https://www-file.huawei.com/minisite/media/annual_report/annual_report_2021_en.pdf?version=0401. An opinion piece by Columbia Professor Jeffrey Sachs on context for Meng Wanzhou’s arrest: https://www.project-syndicate.org/commentary/trump-war-on-huawei-meng-wanzhou-arrest-by-jeffrey-dsachs-2018-12. An explanation of the Huawei ban by Marques Brownlee: https://www.youtube.com/watch?v=qZGpmWrVSaU. 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