Huawei Unveiled: Power, Politics, And The Battle For Tech Supremacy

The House of Huawei: Inside the Secret World of China's Most Powerful Company. Eva Dou. Abacus. 448 pages. 15.99 euros (UK edition).

On a visit to the Toy Museum in Nuremberg, I was struck by the profound connection between Germany's industrial development and its patriotic fervour during the 19th and 20th centuries. Dou's authoritative investigation reveals a similar entanglement between China's national aspirations and its corporate giant.

The recent entry of the Chinese company DeepSeek and their artificial intelligence (AI) model on Donald Trump's inauguration day further supports Dou's insight into the intertwined future of telecommunications and trade wars. Both the history of German toys and the emergence of DeepSeek suggest that a company's success is deeply influenced by its geopolitical context.

Dou's account offers an insider's perspective that transcends the simplistic Huawei-China dichotomy while simultaneously exposing the company's controversial connections with the Communist Party of China (CPC) in countries like North Korea, Iran, Iraq, and under Taliban rule.

Her reference to the Snowden revelations illuminates how states weaponise surveillance under the guise of national security, blurring the boundaries between legitimate defence and violations of privacy rights.

At its core, The House of Huawei chronicles how American policymakers came to realise that, contrary to Francis Fukuyama's famous thesis, "History is not yet ended." The ongoing political tug-of-war between China and the United States (US) emerges as a central theme throughout the narrative.

The book is divided into three parts, and this review follows the same structure:

1. The formative years of Huawei: Exploring Ren Zhengfei's character and the company's evolution

2. Huawei's business model and global exposure: Analysing the company's expansion, political affiliations, and corporate structure

3. Huawei on the global chessboard: Examining geopolitical conflicts, US-China tensions, and Huawei's strategic adaptability

The Formative Years of Huawei: Ren Zhengfei's Upbringing and Military Influence

The trajectory of Ren Zhengfei and Huawei has always been inextricably linked with China's political and economic landscape.

Ren's political consciousness was shaped by his father's patriotism towards the motherland and the trials of the Cultural Revolution. Though he served in the military, Ren was particularly fascinated by its technological functions rather than combat operations. This military ethos would later become embedded in Huawei's corporate culture, fostering a hierarchical structure characterised by discipline and goal-orientated organisation.

Secretiveness defined Ren's approach to Huawei from its inception. While this opacity allowed the company to operate under the radar for years, it ultimately fuelled suspicions abroad, particularly from the US government. Dou highlights this ongoing paradox, noting that even today, the identities of Huawei's first five investors remain largely anonymous.

The company's ownership structure bears striking resemblance to that of the CCP. Employees hold shares under "democratic management," while centralised control is maintained, creating stronger bonds with the state. This hybrid model would later undermine Huawei's claims of being a purely private enterprise in the international arena.

Ren founded Huawei with explicitly national aspirations, and the Chinese government played an instrumental role in the company's international growth. As part of diplomatic delegations, Ren supported surveillance programmes in exchange for state backing.

In one notable address to Huawei employees, he directly linked the company's achievements to China's broader geopolitical goals, including the reunification of Hong Kong and Taiwan. As Dou implies, Huawei was not merely a corporate entity but a political instrument.

The company's aggressive business tactics, characterised as "wolf culture," parallel China's broader "Wolf Warrior Diplomacy." Ren demonstrated considerable adaptability in navigating political relationships with leaders from Deng Xiaoping to Xi Jinping. He leveraged Deng's Special Economic Zone (SEZ) policies, establishing Huawei in Shenzhen's SEZ as a pilot project.

Huawei's ascent was not without controversy, including allegations of bribery and preferential treatment for decision-makers. A key figure in this rise was Sun Yafang, who had previously worked with the Ministry of State Security (MSS), China's intelligence agency. She played a crucial yet covert role in the company's growth and was reportedly behind rumours concerning Huawei's government connections.

The US exploited Huawei's lack of transparency to present it as a national security threat, intensifying trade tensions between itself and China. The obscurity surrounding the company's ownership and political affiliations contributed to global suspicion. Dou positions Huawei in a middle ground where corporate and state interests are inextricably connected, undermining the company's claims of being a purely private enterprise.

Ren's leadership approach was rigid, nationally aligned, and pragmatic. His values catalysed Huawei's global expansion through aggressive tactics, including technological copying and political manoeuvring. This approach resonated with China's nascent capitalist era, where efficiency often superseded ethical considerations. Dou credits Huawei's success to its exploitation of state-based advantages combined with innovative, out-of-the-box thinking.

Internally, Huawei's demanding work culture raised ethical concerns, resembling what critics might call a high-technology sweatshop. Ren's "killer instinct" created not only challenges in rural marketing but also a severe work environment. This excessive corporate behaviour reflected China's impulsive economic growth, sometimes at the expense of individual employee welfare.

The sense of national pride extends beyond Ren's generation to his successors. His daughter, Meng Wanzhou, echoed these sentiments in an essay on Deng Xiaoping, suggesting that the company would remain aligned with Chinese state priorities regarding Hong Kong. Thus, while Huawei has emerged as a Chinese tech powerhouse, it continues to face challenges stemming from its political connections.

Ultimately, Huawei's emergence exemplifies the strategies deployed at the intersection of business and geopolitics. Dou highlights Ren's strategic foresight while acknowledging that the state backing that propelled Huawei globally now places it at the centre of geopolitical crises. As she notes, the very factors that drove Huawei's success have now positioned it in the middle of international tensions.

Shaping of Huawei's Business Model and Global Exposure

Dou emphasises the interlocking relationship between the Chinese government, military, and Huawei. The 2003 Iraq invasion strengthened Ren's determination to establish Huawei as an international force. He believed China's technological independence was essential to counter Western influence. Consequently, Huawei aggressively expanded into markets that the West considered "rogue regimes," including Iraq, North Korea, and Afghanistan.

The company often used third-party firms to conceal its involvement. Dou documents US-United Kingdom (UK) joint strikes on Huawei's military fibre-optic installations, which prompted Washington to begin serious evaluations of the company.

Ren's trip to Russia deepened his scepticism of Western intentions and reinforced his China-first stance. Huawei's corporate culture maintained a military atmosphere, with Ren referring to staff as an "Iron Army" and senior managers as "Generals," fostering resilience and discipline.

Dou explores the rivalry between Huawei and ZTE, a dominant state-owned company. Huawei leveraged ZTE's government favouritism as a strategic advantage in global markets while Ren cultivated a distinctive identity for his company. He attempted to streamline Huawei's governance through a "Basic Law," an operating framework aligned with CCP ideology. Unlike Western enterprises, Huawei prioritised national objectives over profit maximisation.

By 1997, Huawei had become a limited liability company, with Ren owning just 1 per cent while the workers' trade union held the majority of shares. This structure allowed Huawei to present itself as "employee-owned" while maintaining close state ties.

Huawei showcased its technological prowess during the 2008 Beijing Olympics by broadcasting images from Mount Everest. However, this achievement coincided with scandals involving labour law evasion and government surveillance operations.

Dou reveals a paradox: while the company developed technologies that instilled national pride, these same innovations were used for population control. Huawei assisted the government in locating dissidents using facial recognition and thermal imaging. The Chinese government viewed the company's telecom expansion in Tibet as a means of assimilation.

Huawei's operations received mixed responses across Africa and Europe. The US viewed the company's 4G internet development as a potential threat to electronic devices, while the UK adopted a more tolerant approach, directing Huawei to its "The Cell" programme to reassure Europeans. Dou suggests that Huawei's focus on consumer products aimed to present a friendly image for Western markets.

In the Middle East, the company navigated the Arab Spring's impact but encountered difficulties with Iran, creating diplomatic problems. This led to increased scrutiny from the US Congress regarding Huawei's transparency. Dou observes that frightening emotions around national security often overshadow business considerations in these contexts.

Unleashed Huawei: The Global Chessboard

Dou frames Huawei as a pawn in the US-China geopolitical struggle.

Recognising China's rise as a great power, Ren strategically aligned Huawei with Beijing's goals. The company invested in academic research partnerships with both Chinese and Western institutions, seeking technological superiority.

Ren positioned Huawei as central to Xi Jinping's Belt and Road Initiative, enhancing its global influence. The company also played a significant role in China's AI-driven surveillance systems, particularly in the Sharp Eyes project.

Unlike Xi, Ren was fascinated by European architecture, replicating structures like Heidelberg Castle on Huawei's campus. He believed these designs would inspire Huawei engineers to think globally and aspire to greatness.

The Trump administration pressured allies to bar Huawei from their 5G networks, citing espionage risks. Reports linking the company to Chinese intelligence activities in Africa increased global suspicion. The arrest of CFO Meng Wanzhou in Canada for alleged Iran sanctions violations marked a significant escalation in US-China tensions. Dou examines China's retaliatory detention of two Canadians and notes how Meng's arrest led Western academia to distance itself from Huawei.

In May 2019, Trump designated Huawei a national security threat and imposed sanctions restricting chip access. The company launched a multi-pronged defence strategy:

Public relations campaign: Ren opened doors to global media and positioned Meng as a nationalist martyr.

Corporate resilience: Huawei continued investing in AI (Noah's Ark lab) and semiconductor technologies (HiSilicon) to reduce dependence on US components, although Ren remained reserved about publicising these efforts.

Geopolitical lobbying: Amid Brexit, Huawei leveraged the UK's economic concerns, while Germany and France remained on the fence, and emerging markets followed their national interests.

Despite these efforts, European nations eventually aligned with the US following a second round of sanctions. In 2024, Germany prohibited the use of Huawei and ZTE on its networks. Dou highlights Canada's vulnerability in US-China trade wars, noting that Meng's extradition was linked to NAFTA negotiations. After a Biden-Xi swap deal, Meng returned to China as a hero, while Huawei reversed its temporary image makeover.

Huawei countered Western hostility through various strategies. Dou notes that the company had prepared for sanctions with alternative plans, particularly through collaboration of its HiSilicon chip division and China’s largest chipmaker, Semiconductor Manufacturing International Corporation, which played a main part in bypassing US restrictions.

Despite slowed global expansion, Huawei maintained dominance in China. The company's resilience demonstrates substantial state-backed financial support, enabling it to withstand international pressure.

Dou notes that Huawei's corporate governance model resembles the CCP's collective governance model, which shields decision-makers from public view. She observes similar survival instincts in both Huawei and the CCP, noting how both entities have demonstrated remarkable adaptability in the face of challenges.

Dou splits her thoroughly and logically written book into three major parts, making complex developments easy to understand. Her foundational work includes a literature review on Huawei, the telecommunications sector, and the geopolitical rivalry between the US and China, raising numerous issues concerning Huawei's nature. She provides a list of further reading for exploration.

The addition of a timeline and photographs gives readers the opportunity to view the situation from a wider perspective. Dou brings key personalities to life by describing their appearance and movements, adding dimension to the narrative. By introducing characters and events early, she builds tension throughout the story, giving this non-fiction work a storytelling quality.

Dou's work ultimately addresses what Huawei truly represents, suggesting that the company functions not merely as an economic entity but as a microcosm of China itself on the geopolitical chessboard and technological innovation ladder.