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Huawei, a supplier of telecommunications equipment and services based in Southern China, is now a global juggernaut. The company’s eagerness and aggressiveness have upended its entire industry, driving down prices that were set by old-world conglomerates. To many in the technology business, Huawei’s long march up the value chain is emblematic of the attempt by China as a whole to move, like Taiwan and Japan, beyond cheap manufacturing to a sustainably profitable knowledge economy. Looking down upon the hundreds of engineers working in Huawei’s Shanghai offices this year, one wireless executive simply thought to himself: “We’re screwed.” By “we,” he meant the West.
But Huawei has one problem as it pushes ahead as China’s first home-grown, non-state-owned multinational success story: A lot of very powerful people don’t trust it.
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