Thursday, April 21, 2011

Huawei's Chairwoman Worked For China's Ministry of Public Security

Huawei's 2010 annual report included, for the first time, information about its Board of Directors in an apparent bid to demonstrate increased transparency into its operations. The bio for its Chairwoman Sun Yafang failed to mention that she once worked for the Ministry of Public Security, which is the national law enforcement agency for the Peoples Republic of China. Part of its remit is Information Security which in China means information monitoring - precisely the area that Huawei is working hard to change U.S. perceptions about. According to this article, Huawei had no comment on why this very relevant part of Sun Yafang's resume had been omitted.

Two other important facts emerged from the company's annual report:

1. Huawei appears to be a family-run business and there's every indication that it will continue as such (source).

2. The company's strategy of under-pricing its competition by 10-15% is working. It's net profit in 2010 rose 30% from the previous year and it is closing in on Ericsson as the world's market leader in telecommunications. (source)

UPDATE: I incorrectly identified Sun Yafang as Ren Zhengfei's daughter in my original post. It's been fixed with this update (26 April 2011).

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