Books of Interest
Website: chetyarbrough.blog
House of Huawei (The Secret History of China’s Most Powerful Company)
Author: Eva Dou
Narration by: Nancy Wu

Eva Dou (Author, American journalist who reports on technology for The Washington Post.)
“House of Huawei” is a complex history of the growth and development of what became a Chinese multinational technology company that builds smartphones, laptops, smartwatches, and most importantly, telecom infrastructure for cloud services around the world. It is China’s version of Amazon that becomes a massive seller of tech equipment, internet use, and communication.
Ren Zhengfei (Chinese entrepreneur and engineer, founder of Huawei Technologies.)

There are many names of Huawei business leaders that are largely unknown to most Americans. Ren Zhengfei is the founder and most important person in Dou’s story. He is born in 1944 to schoolteacher parents during the Cultural Revolution. He served in the Chinese armies engineering corps that shaped his management style. He worked through famine, political purges, and the strict discipline of military service. He became the founder of Huawei in 1987.

Deng Xiaoping (China’s Chairman of the Central Advisory Commission of the Chinese Communist Party, 1982-1987)
The advance of Deng Xioping opens a capitalist door to the world for Huawei. Beginning in 1978 through 1989 Deng reforms the communist party and encourages a limited form of capitalism in China. When Xi takes over, Huawei becomes more directly subject to communist party oversight. As a company, Huawei is pulled closer to China’s government control. The Huawei network is classified as a national-security asset. Though Huawei may or may not have sought closer association with the CCP, it became entangled with state strategy.

Xi makes Huawei a national champion of innovation and semiconductor technology. It becomes a symbol of China’s technology ambitions while being a target of U.S. sanctions. Dou shows Huawei becomes a battleground for tech strategy between China and the Untied States
Sun Yafang (Chinese engineer and Chairwoman of Huawei, 1999-2018.)

Sun Yafang is a former chairwoman of Huawei. Her ties to Chinese intelligence services are viewed as a recurring controversy with Huawei’s involvement with America. Her relationship with China’s state power structure creates concern on the part of the U.S. with Huawei’s data collection as a part of Huawei’s practices in America.

Meng Wanzhou (aka Cathy Meng or Sabrina Meng, Deputy Chairwoman and CFO of Huawei.)
Ren’s daughter, Meng Wanzhou, becomes the Chief Financial Officer of Huawei. Wanzhou became known to the world when she is detained in Canada in 2018 at the request of the United States. Her arrest ironically leads to more familiarity with Huawei and its expansion in the world. The primary concern the author reveals is how dependent Huawei may be on the Chinese government for information about America’s technology services.
The fundamental concern of America, Germany, and Japan is Huawei’s use of data collection in their countries.

In the end, these countries decide to ban or restrict the use of Huawei’s equipment because of their ties to the Chinese Communist Party, government, and military. Beginning in 2019 the U.S. banned some of Huawei’s services and global chip supplies. By 2026, Huawei is banned from American federal networks, and telecom infrastructure services. Germany and Japan take similar actions between 2018 and 2026.

Dou explains Huawei’s history exposes deep contradictions with China’s government-directed economic growth.
The authoritarian and state-directed economic and political structure of China is a challenging contradiction to the idealism of communism. China’s communism is compelled to change ideologically from Marxism-Leninism to a state-directed form of capitalism. Huawei becomes a telecom giant euphemistically called socialism with Chinese characteristics. In truth, Huawei is structured to be more capitalist than communist with interventionist potential by the state if it conflicts with centralized control of the party.
Communist captitalism.

Dou explains how Party committees are created within Huawei’s management system. These committees exercise ideological control over Huawei’s executives. Huawei’s objectives are required to conform to national priorities. The development of 5G and telecom infrastructure becomes a national, not private asset of the company. This generates fear in the U.S. about security liabilities and foreign influence of China on U.S.’ and allied countries’ political and/or economic affairs. Dou notes China’s leadership insists on enforcing its security laws, data practices, and CCP’s rules of the road for Huawei’s operations.

Huawei discipline.
Dou notes that Xi’s anti-corruption campaign pressures Huawei to tighten internal governance. Executives of Huawei were disciplined for being too extravagant. The CCP organized ideological training for company employees to more fully align them with the Party. China’s government interference in Huawei’s management leads to U.S. sanctions and an arrest of Meng Wanzhou’s in Canada. The United States has effectively banned Huawei telecom and surveillance equipment. Federal agencies cannot use Huawei devices. American internet companies in the U.S. that receive federal funds must remove Huawei equipment. Though Huawei phones and laptops are not banned in the U.S., they are not sold by major U.S. carriers or retailers. The UK, Germany, France, Japan, Australia, and Canada have taken similar actions against Huawei services. Huawei product like laptops and mobile phones are not universally banned but many Western countries have barred telecom infrastructure because of national security concerns.
What is striking about Dou’s book is the history of Huawei shows both confluence and separation between Communism and Capitalism.

Both use the capitalist tools of competition, private enterprise, and global markets. Both are involved in the private sector and provide preferential treatment, political protection, and financing. Nationalism is a greater force than Marxism for both China and the U.S. American corporate discipline is similar to communist party discipline. Further, economic and political strategies of America and China have similarities. However, the two cultures conflict with each other over globalization and levels of interference or control of private companies. America leans toward transparency, partnership, open markets, and international trust. China opts for secrecy, political reliability, ideological conformity, and oversight to ensure national security. Furthermore, America thrives on risk-taking, experimentation, a free market and decentralized decision making while China emphasizes political correctness, Party control, ideological discipline, and insistence on corruption elimination.
In sum, it seems there is an ongoing hybridization of both American capitalism and Chinese communism. Is Trump’s authoritarianism becoming more like Xi’s communism or Xi’s authoritarianism becoming more like Trump’s capitalism? One wonders–are we growing closer together or farther apart?






















































