Connect with us


‘No one owns Huawei but its employees’



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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


CRYSBRO recognised for its entrepreneurial excellence at Star Awards 2020



Ranjana Mahindasiri, Group HR & Admin Manager, CRYSBRO Group of Companies, receving the Star Award for Farm’s Pride (Pvt.) Ltd

Affirming their leadership in Sri Lanka’s poultry industry, the country’s largest producer of poultry CRYSBRO was recently recognised for their entrepreneurial excellence at star awards 2020. Organised by the Department of Industrial Development and Entrepreneurship Promotion under the Ministry of Industries of the Central Province, the annual State Awards ceremony saw CRYSBRO’s subsidiaries Farm’s Pride (Pvt.) Ltd win a ‘Star Award’ and Midland Breeders (Pvt.) Ltd win the highly coveted ‘Merit Award’ as the Best Performing Entrepreneurs in the large scale manufacturing category within the Central Province.

The prestigious awards ceremony was held at the Grand Kandy Hotel with Governor of the Central Province, Lalith U Gamage attending as its Chief Guest. Held annually, Star Awards is known for its comprehensive assessments of its entrants which entail a mix of field visits, presentations and several rounds of thorough interviews. They assess both the performance of the organization and its operations, as well as its entrepreneurial spirit.

“We are deeply humbled and honoured to receive this national recognition for entrepreneurial excellence and resilience especially during these unprecedented times. Our primary intention when applying to awards is to gain a better understanding of industry best practices and continue to elevate industry benchmarks within our own operations. The comprehensive assessments done by awarding bodies give an opportunity to find where we have to improve and what we are doing right, so that at the end of the day we provide poultry produce of the highest quality and safety to our customers. This is invaluable intel and winning an award thereafter is a cherry on top. I would like to also highlight that this victory is clear reflection of the collective commitment and hard work put in by the team at CRYSBRO as well as the patronage of our loyal customer base”, stated CRYSBRO Group of Companies, Group HR and Admin Manager Ranjana Mahindasiri.

As Sri Lanka’s largest poultry producer, this marks the second time the company is recognised for its excellence in operations. They were first awarded a state honour with the ‘Lak Rakiya Harasara’ award by the Ministry of Manpower.

CRYSBRO actively contributes to bolstering the country’s food security agenda as well as towards empowering the rural economy and its communities, inciting major communal and economical transformation in these regions through a series of powerful grass root initiatives.

Under CRYSBRO’s ‘Diri Saviya’ program, over 1,200 maize and rice farmers as well as 250 plus poultry smallholders are given access to a wealth of essential technical and infrastructural facilities to strengthen their operations, allowing them to sell their produce at market prices without the need for any intermediaries. Through ‘Sisu Diriya’, the company offered study material, scholarships and corporate internships to school children and students completing their university or vocational education. The project also contributed the development of better infrastructure facilities in under-developed schools across the island, as well as the donating of books to libraries.

Continue Reading


Skal International Colombo holds 67th Annual General Meeting



L-R Chief Guest Admiral Prof. Jayanath Colombage, Foreign Secretary, Dinushka Chandrasena (president Skal International Colombo), Bernard Wijetunge (Immidiate Past President) and Guest Speaker Rayhan Wanniappa, Director (Air Transportation and Economic Regulation) Civil Aviation Authority of Sri Lanka.

The 67th Annual General meeting of Skal International was held recently at the Taj Samudra in Colombo on February 24. Sk. Dinushka Chandrasena, Managing Director of Travel Talk Asia was elected president and Sk. Ahintha Amarasinghe, Managing Director World Link Travels as Vice President for the year 2021/2022.

The Chief Guest at the event was Admiral Prof Jayanath Colombage, Foreign Secretary and the Guest Speaker was Rayhan Wanniappa, Director Air Transportation and Economic Regulation, Civil Aviation Authority of Sri Lanka.

Skål, founded in 1932, is a professional organization of tourism leaders around the world promoting global tourism and friendship. It is the only international group uniting all branches of the travel and tourism industry with over 12,000 members in 99 countries.

Two new members were inducted during the luncheon, Pankaj Sampat, Area Director (Taj Asia Ltd) and TSL (Taj Safaris Ltd), General Manager for Taj Samudra, Colombo along with Kiran Bussari, Hotel Manager of Taj Samudra, Colombo.

Two awards of recognition for their longstanding service on the Ex-co were given to Sk Zahara Mufti and Sk Sega Nagendra.

Continue Reading


D. Samson Industries signs MoU with Faculty of Medicine University of Colombo



The formalising of the MOU

D. Samson Industries recently signed a Memorandum of Understanding (MoU) with the Faculty of Medicine University of Colombo (FOMUOC). The objective of this partnership was to collaborate for the production of a Beta Brand-Diabetic Shoe Range.

Professor Chandrika Wijeyaratne, the Vice Chancellor of the University of Colombo, Kasun Rajapaksa, Managing Director of D. Samson Industries (Pvt) Ltd., Professor Vajira Dissanayake, the Dean, Faculty of Medicine University of Colombo , Professor Mandika Wijeyaratne, Head Department of Surgery, Dr. Chathuranga Ranasinghe, Coordinator Sports and Exercise Medicine Unit, Dr Romain Perera, Dr. Thusitha Kahaduwa, Dilshan Rajapaksa, Director at DSI, Oshini Jayasooriya, Business Development Manager at DSI and Janaka Bandara, Assistant Business Development Manager at DSI were among those present at the signing of the MoU.

The number of diabetic patients in Sri Lanka is currently growing at an alarming level which calls for urgent medical attention and focus from medical authorities such as FOMUOC and SLMA. Beta diabetic shoes, produced by D. Samson Industries (Pvt) Ltd, are specially designed shoes intended to offer protection for diabetic feet and reduce the risk of skin breakdown, primarily in case of poor circulation, neuropathy and foot abnormalities. It is necessary to make diabetic patients aware of the benefits of this diabetic footwear, which can protect their feet in every level.

Beta diabetic shoes are designed with a protective interior made with soft material and with no stitching, as sometimes even the smallest prominence can irritate and cause skin breakdown in diabetic foot. The top of the shoe is soft and stretchable to suit tender and deformed feet. In addition, beta diabetic shoes contain special insoles that provide support, conform to the contours of the foot and reduce pressure on the bottom of the foot. The specially designed lightweight soles of the shoes are designed to facilitate ease of mobility.

The continuous improvement and development of the beta brand diabetic footwear will be undertaken with technical advice, research and support from the Faculty of Medicine University of Colombo. With the added advice and consultation of the NIROGI Lanka project of the Sri Lanka Medical Association, this footwear will be of optimal use to diabetic patients.



Continue Reading