Dec 02 2013

Huawei is pulling out?

Published by at 10:30 pm under General

Apparently the CEO of Huawei says they are giving up on America.  But he doesn’t say exactly what that means.  To me, that says they’ll probably stop any expansion in the US and stop trying to actively find new business, rather than closing any offices, at least in the immediate future.  They’re fairly happy with their handset sales, according to Ren Zhengfei, but their sales of networking equipment has been severely hampered by allegations of being nothing but a thinly veilled front for the Chinese government, something the company strenuously denies.

In case you’ve never heard of Huawei (Hwa-way, is the correct way to pronounce it), they’re a Chinese networking and phone manufacturer who’s long been accused of having back doors in their system software for use by the Chinese government.  As far as I know, there’s never actually been such a backdoor found, but the software is also so buggy and easy to compromise that there isn’t really a need to backdoor the systems. The quality control of their operating system is possibly some of the worst in the world if rumor is to be believed, but I’m in no position to know or look at the software myself.

So Huawei has been banned from a number of projects in Australia, they’re pulling back on the US and they’re not considered trustworthy by many other countries around the globe.  You’d think this would limit their growth, but they’re apparently prefered over many of the US vendors by China, which should be no surprise.  China’s market is huge, so the company can have a long and fruitful life, but any dreams of world domination are probably going to have to go by the wayside for now.  

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2 responses so far

2 Responses to “Huawei is pulling out?”

  1. Joshon 03 Dec 2013 at 10:13 am

    Their lack of job security and transparency may also have a role to play…

  2. Nickon 29 Dec 2013 at 9:00 am

    I agree that no formal “backdoor” has ever been found but what better cover than to purposely make your software buggy. If they had a true hidden backdoor and a security researcher discovered it, Huawei would have to explain it and own up to the flaw. Think of how many other vendors fit a similar pattern though. I haven’t heard of anybody accusing adobe of backdooring their software. The RSA Edward Snowden release that just came out about NSA paying RSA to use a purposely flawed algorithm in their bsafe product.

    Just my .02


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