November 11, 2011

China's Huawei Has High Hopes For 2012 U.S. Presidential Election (Guest Post)

By Roberto De Primis

Founded in 1987, Huawei is a Chinese telecom equipment company with headquarters in Shenzhen. In about 23 years, Huawei has become the second largest vendor of telecom equipments with $29 Bn sales in 2010.

Huawei's main competitors are Alcatel-Lucent, Nokia Siemens, Cisco, Ericsson and ZTE.

Last year, the Chinese company started a new strategy by hiring Hagen Fendler as chief design director for handsets. The goal is to develop devices which could be recognized and eventually coveted by consumers.

With the generally poor branding power and image of Chinese companies, Huawei also has to differentiate its brand from the low-end smartphones segment.

Huawei & The 2012 U.S. Presidential Election

The Chinese telecom company has its US headquarter in Texas where it employed more than 700 people.

Texas Governor Rick Perry is one of the Republican candidate for the primaries and is looking for the White House in 2012. For the last years, Huawei has experienced tough negotiations with Washington when the Chinese tried to close technology telecom deals with US companies. The first one was the takeover of 3.com, the second deal blocked by the US administration was the one with Cfius and, the last one, this year, when Huawei was blocked from getting involved in the National public safety emergency communications network.

With the Bush administration, Huawei was considered as a threat for the national security but the friendly relationship between Huawei CEO, Ren Zhengfei, and Texas Governor, Rick Perry could reverse the situation if Perry get elected in 2012. However, the link between Texas and Huawei is another issue that other Republican candidates could raise during the primaries; an hypothetical pitfall for Rick Perry, or a perfect joker for Huawei if Perry becomes the 45th President of the United States in 2012.

About The Author - Roberto De Primis is a business intelligence analyst with an M.A. in Political Science. from E.M. Solvay Business School. Writing from Brussels, he is the founder of Eurintelligence, linking economics, and finance with politics.  (EconMatters author archive here.)

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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