The Huawei announced on Wednesday (19) an investment of $ 2 billion to upgrade their security infrastructure in order to remove any doubt as to the reliability and integrity of their products. The goal, according to the company, is to recover the lost market and, mainly, the confidence of customers and countries that, today, refuse to use their products because of espionage allegations.
The investment was announced at a press conference held at the manufacturer’s headquarters in Dongguan, China. On the stage of the presentation, Ken Hu, one of the directors of the company, recalled that allegations of alliances between Huawei and the government of his home country have never been proven, and alleged security breaches have never been found. Still, for the company, the time does not seem to be to speak, but to act.
The $ 2 billion will be spent over five years, with the initial stage of this process focusing on improving safety laboratories and hiring specialists. Dongguan’s own unit is already part of this movement, having just been inaugurated as one of Huawei’s main houses, with others to be opened in the near future.
At the time, Hu also criticized the attitude of countries such as the United States, New Zealand and Australia, which banned the sale of Huawei products and the use of their handsets and services in government infrastructure or public services. For the executive, this type of attitude goes against healthy competition in the market and also does not solve the problem. He denied that Italy and Japan were also about to apply similar prohibitions.
Quite the contrary, in fact. The director of the manufacturer said he was in direct contact with governments around the world as a way of demonstrating the transparency and reliability of Huawei products. With the arrival of the 5G network worldwide, the timing is critical and a ban can have overwhelming impact on the manufacturer’s accounts, something that, of course, she does not want to see happen.
Today, the manufacturer has 25 contracts to supply equipment to structure the technology around the world. More than 10 thousand base stations have already been delivered to telephone operators, with an estimated revenue of US $ 100 billion for this year alone, an increase of 8.7% over 2017. With the investment in security, the idea is leverage this total even more in the near future.
While speaking extensively about finance and security, Hu did not comment on the case of Meng Wanzhou, Huawei’s chief financial officer in Canada. The director said he only expected a “fair conclusion” to the situation, with the executive being accused of using front companies to circumvent US federal rules that impede trade between companies operating in the country and rival governments such as Iran and Korea North.
While the issue has been closely monitored by executives and Huawei’s legal staff, Hu also said that it did not interfere with the company’s day-to-day business, and mainly business travel to other countries to address security issues . The investment, too, would not be a reaction to the arrest of the chief financial officer, but rather an attempt to recover confidence and, above all, business.