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HUAWEI POLITCAL, LEGAL AND ETHICAL ISSUES 1

HUAWEI POLITCAL, LEGAL AND ETHICAL ISSUES 4

Huawei Political, Legal and Ethical Issues

Huawei technologies have risen to the top of the telecommunication industry over the years progressively acquiring new markets and dominating the manufacture of telecommunication equipment and consumer electronics. Its success has however not come without many ups and downs on a road lined with political, ethical and legal battles in various markets as the company tried to compete with top players and dominate the telecommunication industry. One unique region that has dimed the future of the Chinese multinational is the United States market. The company has faced unique legal battles with court cases filed on various complaints regarding its ethical conduct. An article published on Wall Street Journal provides details of Huawei’s struggles in the US including accusations on the company participating in the theft of intellectual property from US companies as well as imitations of various designs from other companies.

An article titled “Huawei’s Years long Rise Is Littered with Accusations of Theft and Dubious Ethics” was published on Wall Street Journal on May 25th, 2019 providing a key record of all the troubles and accusations that the Chinese manufacturer has encountered so far. The article starts by presenting background on a single occasion when a man working for Huawei was caught taking photos of equipment belonging to AT &T Corporation. This was in 2004 during the Supercomm tech conference and the man targeted the booths and photographs taken were of circuit boards. The man was also found to have taken photos other equipment and diagrams of which had technical data for equipment belonging to AT & T. The basic assumption that those present had was that the man was busy copying data and taking photos that would later be used to help Huawei copy technology used by other companies. Even though the man denied his involvement in such a crime, the entire situation raised suspicion on his intentions. This incidence represents one method among the many that competitors and the government of the United States believe the Chinese tech giant has used overtime to make sure that they have inside information about other companies. It is important to however analyze other issues facing the company that this article has provided to be able to underst6and why Huawei’s race to the top has been so chaotic.

Huawei has pushed its way up from small companies in China through taking up the robust Chinese market to now becoming the key company in the provision of the world’s newest network, the 5G. Its presence at the top has rubbed various people and companies the wrong way and maybe the biggest source of controversy. Key businesses that the company has dominance include; smartphones, microchips manufacture and sales, provision of cloud services and global internet traffic transport. The analysis of ten cases that have been filed in the various federal courts paints a picture of a company that has been faced with serious allegations of copying and theft. The company’s corporate culture as reported by many of its former employee’s do not provide any boundary between achievement that is gained through ethical competition and that which is gained through suspicious means. The company is accused of always taking advantage of various situations to get information that is used to create a business advantage. The company’s appetite for intellectual property theft is described as outrageous and limitless regardless of how small their target is.

The accusations facing Huawei have resulted in a confident push by the government to put in place measures that will eliminate the company’s chances of operating in the United States. The government has cited national security as the key motivation of their actions against the company. The government claims that Huawei has been used by Beijing to listen in to the country’s secrets and therefore its equipment must be replaced and the company banned from working in the country (Chuin-Wei and Strumpf., 2-19). The political element of Huawei’s troubles likes in the fact that the U.S. believes that all Chinese companies operate under strict instructions by the Chinese government. This means that the company can be forced to use dubious means to get information to satisfy its home government.

The company is also accused of operating under high secrecy where it does not allow anyone from outside to understand what happens inside its doors including the media. This accusation is further strengthened by the fact that the company has certain rooms with its headquarters complex which are immune to eavesdropping making it a company lined with suspicion. The company has always refuted all claims as attempts but its competitors to bring it down. The company cites its success in innovation over the years and its respect for global regulations.

Key critics of the telecommunication giant settle on the issue related to its smartphones as well as the technology behind 5G. Others accuse the company of using s office in Sweden music from artists without paying them. A former employee who worked in Huawei’s Sweden office claims that the company spent almost all of its resources to steal technology. Over the years the company has successfully closed down some of the court cases with great damage. The company has however made several steps in the right direction utilizing the opportunities that the world of recommunication brought forward fully. For example, the switch from 2G to 3G marked a key point with the company utilizing the opportunity to grow its global market.

This class addresses the political, legal and ethical issues that are facing businesses. From the analysis provided issues facing Huawei Technologies, it is clear that the company fight for the top of the telecommunication industry is a constant trial. However, the company is confident in following the rule of law to clear its name from dubious and opportunistic actions claims. The US government call for replacement of Huawei equipment on key installations has led to a complex war that has been accelerated by the trade war between China and the US (Chuin-Wei and Strumpf., 2-19. Huawei’s position in the telecommunication company places it in a critical position to be used by the political leaders for their selfish gains. This has diverted attention from the delivery of services and supply of consumer electronics into efforts of sanctifying its name. In conclusion, the political, legal and ethical environment is a key consideration in the business world because of the time, money and burn out that comes with battling court cases it too much for anyone to comfortably bear.

References

Chuin-Wei and Strumpf, (May25, 2019). Huawei’s Years long Rise Is Littered with

Accusations of Theft and Dubious Ethics. Wall Street Journal. https://www.wsj.com/articles/huaweis-yearslong-rise-is-littered-with-accusations-of-theft-and-dubious-ethics-11558756858