In an exclusive interview with foreign reporters, the founder of China's Huawei said that his company would not share secrets about its customers and their communication networks.
The company he founded more than 20 years ago has been under fire in recent months with the arrest of Ren's daughter and Huawei CFO Meng Wanzhou in Canada, the arrest of an employee on spying charges in Poland, and a worldwide campaign by Washington to blacklist it. Most recently, Taiwan's Industrial Technology Research Institute prohibited the use of Wi-Fi via Huawei devices on its premises, Sputnik news reported.
Ren Zhengfei spoke in a rare meeting with foreign reporters as Huawei Technologies Ltd tries to protect its access to global telecom carriers that are investing heavily in next-generation technology.
His comments were the 74-year-old former military engineer’s most direct public response to accusations his company is controlled by the ruling Communist Party or is required to facilitate Chinese spying.
Huawei is China's first global tech brand. The United States, Australia, Japan and some other governments have imposed curbs on use of its technology over such concerns.
"We would definitely say no to such a request," said Ren when asked how the company would respond to a government demand for confidential information about a foreign buyer of its telecom technology.
Ren said neither he nor the company have ever received a government request for “improper information” about anyone.
Asked whether Huawei would challenge such an order in court, Ren chuckled and said it would be up to Chinese authorities to "file litigation."
Huawei is facing heightened scrutiny as phone carriers prepare to roll out fifth-generation technology in which Huawei is a leading competitor. 5G is designed to support a vast expansion of networks to serve medical devices, self-driving cars and other technology. That increases the cost of potential security failures and has prompted governments increasingly to treat telecoms communications networks as strategic assets.
The company’s image suffered a new blow last week when Polish authorities announced one of its Chinese employees was arrested on spying charges. Huawei announced it fired the employee and said the allegations had nothing to do with the company.
Ren is the father of Huawei's chief financial officer, Meng Wanzhou, who was arrested 1 December in Canada on US charges related to possible violations of trade sanctions on Iran.
Ren said he couldn't discuss Meng's case while it still was before a court. But he said Huawei obeys the law, including export restrictions, wherever it operates.
Ren also said he became a Communist Party member in the early 1980s after the state press published reports about his development of a measuring tool for an engineering project. Earlier, he couldn't join because his father was deemed a "capitalist roader," but the party was trying to promote young, technologically capable people after the violent, ultra-radical Cultural Revolution in 1976.
Ren founded Huawei in 1987 to sell imported telecom switching gear to Chinese phone companies after the PLA disbanded his engineering unit, according to the company.
Despite his party membership, Huawei makes decisions based on its customers' needs, Ren said.
“I don’t see a close connection between my personal political beliefs and our commercial decisions.”Ren Zhengfei, Huawei Founder
Huawei's US market evaporated in 2012 after a congressional panel said the company and its smaller Chinese rival, ZTE Corp., were security risks and urged phone companies to avoid them.
Huawei says it is employee-owned. Ren said no government entity or any other investor who isn’t a current or former employee owns “one cent of Huawei shares.”
Ren said Huawei has no research cooperation with China's People's Liberation Army and no dedicated unit for military sales and he knew of no PLA purchases of civilian technology.
Ren said the security concerns have yet to have a significant effect on Huawei’s business. The company has signed 5G contracts with 30 carriers and has shipped 25,000 base stations, he said.
Huawei has plenty of opportunities even if it faces higher barriers in some markets, he said.
"If we are not allowed to sell in certain markets, we will have a smaller operation," he said. "So long as we can feed our employees, we are satisfied."
Ren defended Huawei's decision to remain privately held — a status that has fueled questions about its intentions and who controls it. He said that helped to preserve its long-term focus on customer service and product development.
Publicly owned companies care more about a "beautiful balance sheet" while Huawei is focused on a "strong industry structure," he said.
“Capital tends to be greedy.”
Ren also warned against allowing security concerns to divide the globe into isolated markets with incompatible technology standards — a scenario some people have suggested might result from US-Chinese tensions.
"Arbitrarily dividing the world into two technology camps can only harm the interests of all society," he said.
(With inputs from AP , PTI and Sputnik News)
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