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.

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Business

Sri Lanka betting its tourism future on cold, hard numbers

Published

24 hours ago

2025/12/8

Thilina Walpola

“From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility holds its panel discussion

National Airport Exit Survey tells quite a story

Australia’s role here is strategic, not charitable

In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.

The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.

Tourists have a real sense of achievement after hiking the trail to Ella Rock

The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”

Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.

“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.

“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.

By Sanath Nanayakkare

Business

New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda

Published

24 hours ago

2025/12/8

Thilina Walpola

New Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola

In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.

Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.

“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.

To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:

Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.

Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.

Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.

Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.

Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.

By Sanath Nanayakkare

Business

Brandix recognised as Green Brand of Year at SLIM Awards 2025

Published

24 hours ago

2025/12/8

Thilina Walpola

Brandix has championed best practices in the sphere of sustainable manufacturing over the years

Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.

The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.

A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.

Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”