House of Huawei

1. Humble Origins Fuel Ren's Ambition

As a military man I have known many clever and truly outstanding strategists. I have rarely come across an individual more strategically oriented than Ren.

Poverty and Perseverance. Ren Zhengfei's early life was marked by hardship, including surviving the Great Chinese Famine and enduring the political turmoil of the Cultural Revolution. These experiences instilled in him a deep sense of resilience and a determination to overcome obstacles. His parents, both teachers in rural Guizhou, instilled in him a love for learning and a strong work ethic, despite their own struggles.

Education as a Ladder. Ren's parents emphasized the importance of education as a means of social mobility. Despite the challenges of attending college during the Cultural Revolution, Ren excelled in his studies, eventually graduating with a degree in engineering. This education provided him with the technical foundation for his future endeavors.

Early Influences. Ren's father, Ren Moxun, was a bookseller who promoted patriotic literature, instilling in his son a sense of national pride and a desire to contribute to China's development. This early exposure to revolutionary ideas and a commitment to serving the nation would later shape Ren's vision for Huawei.

2. Military Discipline Shapes Huawei's Culture

A country without its own program-controlled switches is like one without an army.

Base 011 Experience. Ren's time in the military, particularly his work at the secretive Base 011, was formative. He learned valuable engineering skills and developed a deep understanding of the importance of technology for national defense. This experience also instilled in him a sense of discipline and a hierarchical organizational structure.

Military-esque Culture. Ren infused Huawei with a military-style culture, emphasizing discipline, loyalty, and a willingness to make personal sacrifices for the greater good of the company. New hires underwent boot camps, and employees were expected to work long hours and prioritize the company's goals above their own.

"Wolf Culture." Ren famously promoted a "wolf culture" within Huawei, encouraging employees to be aggressive, persistent, and collaborative in their pursuit of market share. This ethos fostered a competitive environment that drove innovation and rapid growth.

3. Embracing Capitalism with Chinese Characteristics

A country without its own program-controlled switches is like one without an army.

Seizing the Opportunity. China's economic reforms in the 1980s provided Ren with the opportunity to start his own business. He recognized the potential of the telecommunications market and founded Huawei in 1987, initially focusing on assembling and selling telephone switches.

Political Acumen. Ren demonstrated a keen understanding of China's political landscape, forging ties with government officials and aligning Huawei's goals with national priorities. This political savvy helped Huawei secure funding, navigate regulatory hurdles, and gain access to key markets.

"Red Hat" Strategy. Huawei's decision to register as a "collectively owned enterprise" in the early 1990s, a type of company with ties to the state, provided it with political protection and access to resources. This "red hat" strategy was a common practice among Chinese startups seeking to gain an advantage in the nascent market economy.

4. Innovation Through Strategic Partnerships

As a military man I have known many clever and truly outstanding strategists. I have rarely come across an individual more strategically oriented than Ren.

Reverse Engineering and Adaptation. In its early years, Huawei relied on reverse engineering and adapting foreign technologies to develop its own products. This approach allowed the company to quickly catch up with established players in the telecommunications industry.

Joint Ventures and Technology Transfer. Huawei actively sought out partnerships with foreign companies, leveraging joint ventures and technology transfer agreements to acquire expertise and access new markets. These partnerships helped Huawei improve its technical capabilities and expand its global reach.

Global R&D Network. Huawei established a global network of research and development centers, attracting top talent from around the world. This decentralized approach to innovation allowed the company to tap into diverse perspectives and stay at the forefront of technological advancements.

5. Navigating Geopolitics and Global Expansion

As we are a large, globalized company, major events happening in any corner of the world may have something to do with us.

Courting "Rogue Regimes." Huawei's willingness to do business in countries sanctioned by the West, such as Iran and North Korea, allowed it to gain a foothold in markets that its competitors avoided. These controversial contracts provided Huawei with valuable experience and revenue, but also attracted scrutiny from Western governments.

The "Iron Army" Abroad. Huawei's employees were known for their dedication and willingness to work in challenging environments. The company's "iron army" ethos fostered a culture of resilience and adaptability, enabling it to succeed in diverse and often difficult markets.

Building Relationships. Huawei invested heavily in building relationships with government officials and telecom operators around the world, often offering generous financing packages and customized solutions. This approach helped the company win contracts and gain market share, even in the face of political opposition.

6. The Price of Success: Sacrifice and Scrutiny

A country without its own program-controlled switches is like one without an army.

"Mattress Culture" and Employee Well-being. Huawei's demanding work culture, characterized by long hours and intense pressure, took a toll on its employees. The company faced criticism for its "mattress culture," where engineers slept at their desks to meet deadlines, and for a series of employee deaths that raised concerns about overwork.

Intellectual Property Disputes. Huawei's rapid growth and aggressive pursuit of market share led to accusations of intellectual property theft from Western companies, most notably Cisco. These disputes tarnished Huawei's reputation and raised questions about its commitment to ethical business practices.

The Cost of Ambition. Ren Zhengfei's relentless pursuit of technological leadership and global dominance came at a personal cost. His demanding work schedule and focus on the company strained his relationships with his family, and he faced criticism for prioritizing Huawei's success above all else.

7. Data as the New Battlefield: Surveillance and Security

As we are a large, globalized company, major events happening in any corner of the world may have something to do with us.

Safe City Solutions. Huawei's development and deployment of Safe City surveillance systems raised concerns about privacy and human rights. These systems, which combined facial recognition, data analytics, and video surveillance, were used by governments around the world, including in China's Xinjiang region, to monitor and control their populations.

The Listening State. Huawei's involvement in building telecommunications networks raised fears that its equipment could be used for espionage by the Chinese government. These concerns were fueled by China's National Security Law, which requires companies to cooperate with state intelligence agencies.

Ethical Dilemmas. Huawei's executives faced difficult ethical dilemmas as they navigated the complex landscape of global security and surveillance. The company's commitment to complying with local laws often clashed with concerns about human rights and privacy, creating tensions between its business interests and its social responsibilities.

8. A Daughter's Ordeal: Hostage Diplomacy and Resilience

As we are a large, globalized company, major events happening in any corner of the world may have something to do with us.

Meng's Detention. The arrest of Meng Wanzhou in Vancouver in 2018 marked a turning point in Huawei's history. The US government's extradition request and subsequent charges of bank fraud and sanctions violations thrust Huawei into the center of a geopolitical conflict between the United States and China.

Hostage Diplomacy. Meng's detention triggered a wave of retaliatory actions by the Chinese government, including the detention of two Canadian citizens, Michael Kovrig and Michael Spavor. This "hostage diplomacy" further strained relations between Canada and China and raised concerns about the rule of law.

A Hero's Welcome. Meng's eventual release and return to China were met with a hero's welcome, highlighting the deep sense of national pride and support for Huawei within the country. Her ordeal became a symbol of China's struggle against Western hegemony and its determination to assert its place on the world stage.

9. The Future of Huawei: Survival and Adaptation

We are like a small sesame seed, stuck in the middle of conflict between two great powers.

US Sanctions and Supply Chain Disruptions. The US government's sanctions against Huawei, particularly those targeting its access to advanced chip technology, have severely impacted the company's business. Huawei has been forced to adapt by developing its own chip designs and seeking alternative suppliers.

Domestic Market Focus. With its access to international markets restricted, Huawei has increasingly focused on the domestic Chinese market, leveraging its strong brand recognition and government support to maintain its position as a leading technology company.

Innovation and Diversification. Huawei is investing heavily in research and development, particularly in areas such as artificial intelligence, cloud computing, and 5G, to diversify its business and reduce its reliance on US technology. The company is also exploring new markets and partnerships to expand its global reach.

Last updated: April 13, 2025