Business

‘No one owns Huawei but its employees’

Published

5 years ago

2020/12/28

By Jiang Xisheng

Sweden’s telecom regulator, PTS, recently excluded the country’s operators from using Huawei equipment in their 5G networks, justifying the action by saying that any vendor based in China posed an automatic threat to Swedish national security.

Such misconceptions could prevent Swedish households and businesses from enjoying the benefits of Huawei’s innovation. Unfortunately, they are reinforced by the press. For example, an editorial column published in Dagens Industri on November 10 suggests, “China should open Huawei for foreign ownership” . This recommendation, while undoubtedly well-intentioned, displays a profound misunderstanding of how our company is structured and managed.

Huawei was founded in 1987, and I joined in Huawei in 1989. Back then banks were reluctant to lend money to small start-up companies. Huawei had to raise capital by selling shares to employees, an arrangement that continues to this day. Employees buy shares with their own money, and receive annual dividends based on the number of shares they hold. They also elect members to form a Representatives’ Commission on a one-vote-per-share basis. The Commission elects the company’s Board of Directors. Such a profit- and risk-sharing system provides Huawei with the funds it needs for long-term growth and lays the foundations for its governance and management.

Being privately held frees Huawei from the short-term pressures faced by publicly listed companies, whose shareholders expect them to meet quarterly earnings targets. Liberated from such external pressures, Huawei can maintain its long-term focus on research and development, while shareholding employees can reap higher rewards.

Currently, Huawei founder and CEO Ren Zhengfei holds about 1% stake of Huawei; the rest is held by Huawei’s union, the platform through which employees own the company. It is common and legitimate for companies in China to set up trade unions to serve as their shareholding platforms. Although the media likes to describe this arrangement as opaque, it is actually not so different from what one finds at employee-owned companies elsewhere in the world, including John Lewis Partnership (a department store group in the UK) and Essilor (a French-based international ophthalmic optics company).

In fact, our ownership structure is embraced by many Swedish companies today. Last year’s European company Survey, shows 11% of all companies in Sweden’s private sector have employee share ownership schemes – more than double the European average. Perhaps the model appeals to Sweden’s egalitarian sensibilities: Employees are paid differently based on the work they do, but there is a transparent profit-sharing mechanism in place. People feel empowered, care about the quality of their work, and continually think about ways to improve the business. Some European experts have concluded that Huawei is implementing “employee capitalism.”

Detractors allege that we became a global leader through government support. In fact, the company has succeeded for the opposite reason: we operate independently and follow the logic of business, not politics. From its inception in 1987 until the early 2000s, Huawei competed with Chinese state-owned enterprises, many of which later shrank to insignificance or disappeared completely. This result should not surprise capitalists, who understand that in most cases, state-owned or -controlled companies tend to lose their competitiveness due to bureaucracy and low efficiency. This is particularly true in the high-tech industry. Why has China’s tech industry developed so fast and so well? Perhaps in part because, since the 1980s, China has opened its market to, and provided a level playing field for, companies such as Ericsson, Nokia, Motorola, Siemens, and other foreign companies.

The PTS statement reminded me of China’s period of political turmoil in the 1960s and 1970s. Because my family were classified as landowners, I almost missed the chance to attend university. I hope the PTS can perform an objective, fair, and fact-based assessment, and make decisions that will benefit the whole of Sweden. Huawei’s door is always open for Swedish politicians, researchers, journalists, and others to visit company facilities and its Employee Stock Ownership Plan (ESOP) Room, and exchange ideas about the system the company has built over the past three decades.

In the meantime, the facts remain unchanged: No government entity dictates Huawei’s business or investment decisions, and no one owns Huawei but Huawei’s employees.

Jiang Xisheng is Chief Secretary of the Board at Huawei.

All News Advertisement

Business

Sri Lanka’s economy: A slow healing journey in 2026

Published

22 hours ago

2026/01/2

Thilina Walpola

PMI shows tentative signs of hope in factories and business activity

The latest Purchasing Managers’ Index (PMI) from the Central Bank suggests Sri Lanka’s economy is beginning to find its feet after a severe crisis, revealing tentative signs of hope in factories and business activity. It indicates the deepest economic pain may be over. With prices rising more slowly, families and companies are getting some much-needed relief.

The Island spoke to an independent analyst for an outside perspective. Elaborating on the report, he struck a cautious note: “Yes, the PMI sounds favourable. But no one should think the hard times are completely behind us. The road to recovery is long and full of potholes.”

“While we can hope for slow, steady improvement in coming months, major problems remain,” he continued. “The country’s massive debt is a heavy burden. Staying on track with the IMF programme requires sticking to tough reforms, which won’t be easy. Global economic uncertainty also affects our exports and even other forms of external support.”

“In short, the next phase won’t be a quick boom. It will be a time for careful repair. These small improvements are like young seedlings – they need constant care, sound policy, and continued external support to grow strong. Our task is to turn this shaky stability into a solid foundation for lasting, inclusive growth. The economy is out of emergency care, but full recovery will be a long and patient journey,” he concluded.

When asked if the current political landscape would aid recovery, he pointed to the present stability as a key advantage. “With political stability in place, the path for necessary reforms and recovery should be more navigable now than ever in the past,” he said.

By Sanath Nanayakkare

Business

Sri Lanka Insurance Corporation General Limited inaugurates business operations for 2026

Published

22 hours ago

2026/01/2

Thilina Walpola

Sri Lanka Insurance Life Ltd and Sri Lanka Insurance General Ltd inaugurated their business operations for the year 2026 on 1st January at the Sri Lanka Insurance Head Office. The event was graced by the Chairman, Board members, Corporate Management, and staff of SLIC.

Parallel business launches were also conducted at branch level, with branch staff joining the head office proceedings via live stream. The day’s programme commenced with blessings observed from the four major religious faiths, symbolising unity and goodwill for the year ahead

Heralding the dawn of the New Year, SLIC brought together all 142 branches in a cohesive celebration, uniting as one family to light the traditional oil lamp. During the celebrations, the theme for SLICGL for 2026 ‘Leading the market, strengthening every step’ was officially unveiled

Celebrating 64 years of service and expertise, SLIC continues to stand as Sri Lanka’s most respected and trusted name in insurance. Over the decades, the organisation has remained at the forefront of the sector, sustaining industry‑wide growth and equity even through testing times.

The year 2025 brought many meaningful and positive achievements for SLICGL, yet it concluded with significant challenges as the nation faced the aftermath of the devastating Cyclone Ditwah. Rising to the occasion, SLICGL honoured claims and delivered timely relief, offering protection and reassurance to communities impacted by the catastrophe.

SLICGL proudly reflects on a year of remarkable achievements in 2025. The organisation was ranked

Sri Lanka’s highest-rated insurance brand as the only A+ Fitch rated insurer in the country and became the first and only insurer to surpass Rs. 30 billion in Gross Written Premium. SLICGL secured Carbon Neutral Certification, highlighting a commitment to sustainability. SLICL was also recognised as the Most Valuable General Insurance Brand by Brand Finance.

The lifting of the vehicle import ban in January 2025 helped to revitalize the automotive sector and also reaffirmed SLICGL’s role as the nation’s most trusted insurer. Stepping in to protect new vehicle owners, SLICGL strengthened its portfolio, supported national growth, and supported families and businesses to move forward with confidence.

During 2025, SLICGL continued its partnership with the Ministry of Education on the Suraksha Insurance Scheme, a national initiative aimed at securing the health and wellbeing 4.5 million schoolchildren throughout the country. The partnership provides students regardless of background, access to essential insurance coverage, safeguarding health, supporting families, and strengthening the nation’s future.

SLIGL’s mission places customers at the heart of everything it does. The organisation continues in the commitment of meeting and exceeding customer expectations through its expertise and specialised services. Aligning business strategies with this vision, SLIC delivers a superior customer experience through all touchpoints.

Business

MILCO turns around fortunes, posts Rs. 1.49 bn record profit in 2025

Published

22 hours ago

2026/01/2

Thilina Walpola

Lal Kantha

The Milk Industries of Lanka Company (MILCO) has recorded the highest profit and sales revenue in its history, driven by strong performance under the flagship Highlands brand, Agriculture Minister Lal Kantha said.

Addressing a Performance Incentive Awards Ceremony held at the MILCO Head Office in Narahenpita on December 31, the Minister said the achievement marked a decisive turnaround for the state-owned dairy enterprise, which had earlier been prepared for divestment.

“When we assumed office, MILCO was being readied for sale. Today, we have been able to rescue it and transform it into a profitable institution,” Minister Lal Kantha said. “By October 2025, the company had generated profits amounting to Rs. 1,490 million, the highest profit ever recorded in MILCO’s history.”

He noted that 2025 has also become the year with the highest sales revenue since the company’s establishment, reflecting improved operational efficiency, renewed consumer confidence and stronger market penetration under the Highlands brand.

The Minister said the government intends to ensure that the gains from the company’s financial recovery are shared across the value chain. “A portion of the profits will be distributed as incentives among dairy farmers,” he said, adding that plans are also in place to provide free life insurance coverage to 15,000 dairy farmers in 2026.

The incentive awards ceremony was organised to recognise employees who played a key role in achieving record sales targets and historic profitability, with senior management highlighting improvements in production planning, supply chain management and farmer engagement.

Minister Lal Kantha paid tribute to the dedication of the MILCO workforce, stating that the turnaround was the result of collective effort.

“This achievement belongs to everyone who worked tirelessly to restore confidence in this institution. I extend my sincere appreciation to all those who contributed to this success,” he said.

MILCO’s performance in 2025 is being viewed as a benchmark for the revival of state-owned enterprises, particularly within Sri Lanka’s agri-based industrial sector.

By Ifham Nizam