Huawei plans to increase European investment

Absrtact: Huawei's president, Ren, said he would not let Huawei go on the market because he was unwilling to become short-sighted, and that Huawei was also planning to expand its investment in Europe, but it would take a long time to penetrate the US market. ren 2nd rare in Roentgen

Huawei's chief executive, Ren, said he would not let Huawei go on the market because he was unwilling to become short-sighted, and that Huawei was also planning to expand its investment in Europe, but it would take a long time to penetrate the US market.

In a rare interview with foreign media in London 2nd, Ren said that because of his personal style dislike to contact with the media, so let Huawei has a mysterious image, and then to foreign countries as security concerns.

When it comes to the ownership structure of the company, Ren said he had no intention of letting the company go public on the grounds that investors were greedy and would want to squeeze a few drops of the company, which would make Huawei a short-sighted company, in contrast to Huawei's unique employee-ownership structure, one of the reasons they could catch up with rivals in the telecoms equipment industry.

Responding to listing issues

As the world's second-largest telecoms equipment maker, Huawei is being shut out of the world's largest communications market, thanks to intelligence agencies and political security concerns. The US said it banned Internet services from Huawei-made equipment for two reasons: first, the military background of Ren's early days, and Huawei's ties to the Chinese government. In this respect, some people suggested that Huawei listed in the United States, the company's stake to the Westerners, so as to establish the latter's trust.

In Ren's view, however, the "greed" nature of Western market capital would undermine Huawei's long-term development, "a large number of theories in traditional economics claim that shareholders have a long-term vision, that they do not pursue short-term interests and that they will make very reasonable and predictable investments in the future." But the truth is that shareholders are ' greedy ' and they want to squeeze every drop of the company's profits as soon as possible. ”

Ren also explained the ownership structure within Huawei, saying it held only 1.4% per cent of its shares and that the rest was owned by its employees. Ren believes that this structure is one of the reasons Huawei can catch up with industry peers, "Huawei employees are also owners of the company, so they tend to focus on the long term, do not rush to cash in." The owner of the company is not greedy, so Huawei can stay where it enjoys. However, I can not live forever, maybe one day Huawei people will become greedy. ”

Huawei first disclosed the ownership structure in its 2009 earnings report, when Ren held 1.4%. Huawei Holdings is a private sector owned by 100% of employees, and the shareholding structure has not changed.

Plans to increase European investment

Despite accusations of dumping and government subsidies in the US and Europe, Ren stressed that they had to act to confirm that they had not done so, with the evidence that Huawei's research and development spending had reached $5 billion trillion, up from Ericsson's $4.9 billion trillion, at the 2013-year rate. This helps Huawei develop high-end products and get rid of low-end images.

Ren believes that the United States will also open the door to Huawei in the future, but it will take a long time. "I think it will be 10-20 years before we have a chance to convince the US that Huawei is an ' honest ' and a positive figure. ”

Despite the setback in the US market, Ren appears more confident in the European market, saying he hopes to see Huawei as a European company in the coming years, in an effort to prove that Huawei will strengthen its research and development investments in Europe and expand its employee incentive program to all non-Chinese core employees in 2014, Hope to attract more talent to the effectiveness of Huawei.

Huawei has announced a 2 billion dollar investment in Europe for its local sourcing and research and development Center, which now employs more than 7,000 people across Europe.

According to Ren's forecasts, Huawei's annual revenue will likely be doubled over the next four years, to $70 billion to $80 billion trillion. But he said Huawei would not make any mergers and acquisitions in the short term in an effort to boost smart-device or telecoms-equipment operations.