Joke Collection Website - Public benefit messages - An article tells you the history of Huawei's market development and why the United States is targeting Huawei.
An article tells you the history of Huawei's market development and why the United States is targeting Huawei.
During the period of 1995, due to the limited technical level, the threshold for communication equipment manufacturers from developed countries to enter Hong Kong was very high, so Huawei first chose Hong Kong with very similar culture. Therefore, Huawei immediately set up a joint venture with Hutchison Telecom in Hong Kong. With the efforts of Huawei employees around the clock, it completed the construction of a comprehensive commercial network of about 36 million yuan in three months, which was a great achievement at that time. With its low price and thoughtful service, Huawei's reputation in Hong Kong is getting better and better, and Huawei has also completed its first step towards globalization.
Shortly after Huawei entered the Russian market, the Asian financial turmoil hit Russia's already fragile economy. At the same time, the Russian leadership has also made a very wrong decision. Although the famous "shock therapy" has played a very good role in boosting the western economy, Russia's economic level and development environment are different from those of western countries. According to this method, Russia's economy has deteriorated. Russia's domestic economy is not only unable to improve, but also in danger of paralysis. At that time, many foreign businessmen withdrew from the Russian market. The same applies to communication. International brands such as Alcatel and Siemens did not hesitate to withdraw from Russia in order to protect themselves, but Huawei decided to stay. 1June 1997, Botao Huawei was formally established, mainly responsible for the production of digital program-controlled switches and other equipment. When other manufacturers quit, Ren Zheng Fei stayed because he saw great business opportunities in the Russian market. Russia has a large population and a vast territory, but the transmission rate is very low. As long as he sticks to this position, he can get significant benefits, but he didn't expect to stick to it for six years. For six years, Huawei had only one company in the Russian market, with only $38. This is not acceptable to every company because it won't work. However, Huawei has clearly recognized the Russian market and deeply touched the Russians with his persistence. Even without business, Huawei people have not stagnated. They continue to release Huawei's technology and products to Russian users. After six years of persistence and dedication, Huawei finally got a bumper harvest. In 2 1 century, Huawei won two projects: the transition to Kiral Telecom and Moscow MTS mobile network. In 2002, Huawei won the 3,797 km national optical transmission line project from Moscow to Novosibirsk. After tasting the sweetness, Ren invested $8.5 million in the Russian market in 2005 to establish and enrich Huawei's market in Russia. So far, Huawei's annual income in Russia has reached billions of dollars. Huawei finally realized its original vision, became the leading telecom manufacturer in Russia, and established long-term cooperative relations with the Russian government and manufacturers, which was recognized by the Russian government and people.
After the opening of Hong Kong and Russia markets, Huawei continued the strategy of encircling cities from rural areas and began to explore African and Latin American markets. These two areas are poor in natural conditions and backward in economy. Due to years of war and disease, foreign businessmen are generally eager to invest. Therefore, Huawei employees risked their lives to develop the local market. For example, if you enter the Congo market, there will be war. A group of people were happily discussing the market plan in the office when suddenly there was a gunshot outside. A bullet hit the wall of the house, scaring Huawei employees who were in the room for a meeting. There were more than 30 employees in the whole office at that time. They were very scared and soon found a hiding place in the house. Some people make phone calls, send text messages, and some even start writing wills. Huawei has encountered new difficulties in Latin America. On the one hand, the languages in Latin America are mainly Portuguese and Spanish, which makes communication difficult. On the other hand, many countries have not established diplomatic relations with China. It is conceivable that China will have difficulties in this respect. In this case, Huawei immediately made a major market breakthrough. In 2006, Huawei established the first 3G trading office in Africa in Mauritius, and then established the longest communication network in South Africa. In the past ten years, its sales in South Africa have reached 654.38 billion yuan, and it is still growing. 20 1 1 year, Huawei announced that it would invest 300 million dollars to build a research center in Brazil. In 20 12, Huawei's total sales in Brazil reached $2 billion. Meanwhile, Huawei's development in other Latin American countries is also very rapid. For example, Huawei has become an important supplier in the Argentine market; In Chile, Huawei is the partner of all major telecom companies in Chile. In 20 10, Huawei's sales in Chile exceeded $200 million. The United States is also in Venezuela, a small country. In 2007, Huawei won most contracts for the construction of its glass fiber backbone network. In 20 12 years, Huawei had 1400 employees in Venezuela. In Peru, Bolivia, Dominica and Ecuador, Huawei has made major breakthroughs in the market.
After Huawei occupied the Asian, African and Latin American markets, Huawei had the capital to compete with big companies in the most mature markets in Europe. Therefore, Huawei decided to enter the European market. Although the European market has a high output value, the competition is beyond imagination. As soon as Huawei entered the European market, it failed several times because of its low popularity and poor technology. Ren Zheng Fei decided to adopt the strategy of encircling cities from rural areas in Europe. He ordered Huawei's distributors to enter the poorest and most difficult places in Europe and places that other manufacturers did not want. Huawei has also lost many excellent employees in the European market. Some of them suffered air crashes, shipwrecks and some terrorist attacks, many of which occurred in remote and backward areas. However, Huawei has opened a gap in the European market. Once, a British international operator wanted to develop the Portuguese market and prepare to set up a communication network in Portugal. Due to their limited strength, they want to invite Nortel, Lucent and Motorola to jointly invest. As a result, the ratings of these three companies are much higher than expected. Huawei immediately seized the opportunity to build a communication network covering the whole of Portugal by using one-third of the price of other communication lines. After the implementation of the project, Huawei gained temporary recognition in Europe. Huawei began to use the trust and connection established by the project to better develop the markets of other countries. Later, Huawei occupied the markets of France, Germany and Britain, and finally occupied Europe.
Huawei's development speed in the international market is beyond most people's imagination. In Asia, Africa, Latin America and Europe, Huawei is entering the market at an alarming rate. This is why many competitors are very anxious after learning that Huawei has entered its own field. American companies are no exception. Everything Huawei is doing now is in the eyes of American companies, and they have a strong sense of crisis. In fact, Huawei has long planned to enter the US market. American telecom market is the most mature telecom market in the world, and it is also the largest communication demand market in the world. But at the same time, the United States has the most mature companies, many of which have a history of hundreds of years. It is difficult for any foreign businessman to get a piece of it. In addition, the communication market here is saturated, and the prices and services are relatively uniform. No company can get greater benefits from these. Huawei knows that it has no advantage over Cisco, so its plan to enter the American market has been postponed repeatedly, because Ren hopes that Huawei will gain enough development space and raise enough funds elsewhere before entering the United States. After everything went well in the European market, Ren officially chose the American market. When Ren imagined how to compete with Cisco in the American market, he didn't expect Cisco Huawei to go to court. From June, 5438 to February, 2002, the vice president of Cisco Huawei Company visited and directly accused Huawei of infringing Cisco's intellectual property rights, demanding that Huawei not sell products and compensate. Aware of the seriousness of the problem, Huawei agreed to suspend the sale of products related to intellectual property disputes and conduct a thorough internal investigation. This is Huawei's first compromise. After all, Ren Zheng Fei doesn't want to create unnecessary troubles for himself in the American market. However, Ren also said that Huawei did not infringe and did not accept infringement lawsuits. Cisco is not satisfied with Huawei's practice. On June 22, 2003, he sued Huawei for infringing Cisco's intellectual property rights in the United States. The indictment is 77 pages long, including patent, copyright, unfair competition, trade secrets and other expenses 2 1 page. When the complaint came out, Huawei's image was seriously damaged.
Here, we want to say that Cisco's complaint is not very wise, but there are loopholes to be exploited, because the United States has been committed to research technology since World War II. No matter what industry, they have the most advanced technology in the world. If they promote their products all over the world, manufacturers in other countries will imitate and produce the same or similar products. This is almost a business model that one or two companies cannot change. China company itself lacks technology and can only imitate the advanced products of the United States. Although Huawei has developed for more than ten years, it has made great technological progress and independently researched and developed, but it still lacks product function innovation. American products can be seen in many places. This gives Cisco a chance.
Careful analysis reveals that Cisco's measures against Huawei are intentional. Cisco informed Huawei of this violation in June+February of last year, and filed a complaint in June+1October of this year, demanding time, because the Spring Festival is only nine days away from June+1October 22 of this year. Huawei is preparing for a holiday and lacks the ability to cope with pressure. At this point, Huawei just lacks stress response and has no chance to deal with materials that can prove its innocence. If Huawei loses this lawsuit, it will lose a large number of customers and suffer a major blow in domestic and foreign markets. During the appeal, Cisco decided to kill Huawei.
Ask the court to convict Huawei, compensate Cisco for patent infringement losses, award Huawei all profits and benefits from Cisco patent infringement, award Huawei compensation, award Huawei compensation for all economic losses caused by Cisco infringement, award Cisco statutory compensation and other damages such as reasonable legal fees charged by Cisco in this case. . .
According to this compensation plan, Huawei has to pay tens of thousands of dollars. After the complaint, Huawei's international market partners suspended their business with Huawei and adopted a wait-and-see attitude. At the same time, many domestic companies began to seize Huawei's domestic market. During this period, Ren began to complain that he had depression and cancer. At this time, severe insomnia and depression made Ren cry every night, but the next morning he stood up and worked at Huawei as usual, which showed his extraordinary perseverance. Ren was appointed as the most talented chief prosecutor. At the same time, take the initiative to contact the American media and inform the public of Huawei through the media. When the American media found out that Huawei had been hiring world-class companies to clean up accounts and provide management services since 1998, it was very shocked, because it required strong strength and reputation, because first-class financial companies would not cooperate with corrupt companies, and thus the media's attitude towards Huawei changed. Ren Zheng Fei realized that if he wanted to reverse this situation, he had to follow American rules, so he hired Robert Halsam, a well-known lawyer in the United States and the world. The lawyer's fee is as high as $630 an hour. Facts have proved that this decision is correct. Lawyer Robert Haslam helped Huawei find a big loophole in Cisco, that is, private agreement. The so-called private agreement refers to the agreement entered into by the company itself, which is only applicable to the equipment products produced by the company. The purpose of private agreement is to realize technology monopoly and make the company obtain exclusive high profits. Under normal circumstances, the company will give up the compatibility with similar equipment of other companies and seek a dominant position. Cisco ranks second in the communication network industry, accounting for 80% of the global market share. Their routers have long been the industry standard. If other manufacturers want to survive in the market, they must produce routers according to their own standards, which is why the products on the market are very similar to those of Cisco. There is controversy about whether routers manufactured according to Cisco standards infringe on property rights. Finally, private agreements may constitute an industry monopoly that is not allowed in any market. This is why countries have different judgments on private agreements. In the United States and Australia, private agreements are protected by law, but in many European and Asian countries, private agreements are not protected by law. In this way, Huawei did find strong evidence to defend itself, that is, domestic routers did not involve any infringement.
At the first hearing, Huawei put forward the idea of private agreement. At the same time, she sued Cisco for intentionally hurting Huawei, deliberately suppressing Huawei, and especially slandering Huawei for destroying nuclear technology, which caused Huawei to suffer serious economic losses on a global scale. After the hearing, Huawei told the media that "Cisco's behavior should be to restrict competition." Huawei fought back and hit Cisco. At that time, 80% of Cisco's network equipment could be used in the China market, which was equivalent to a hidden monopoly through private agreements. Although monopoly and cartel were rarely mentioned in China at that time, monopoly was a serious economic problem all over the world. Ren lodged a complaint directly in China, accusing Cisco of monopolizing the China aviation market in disguise. Cisco thought it would win, but Huawei's massive counterattack made Cisco a loser.
In the United States, Huawei has also begun a strong counterattack. They filed a reply of 18 in Marshall Court, Texas, and filed a counterclaim against Cisco, listing more than 90 allegations made by Huawei against Cisco: "In Huawei's reply to the court, Huawei has 27 reasons to deny it; Huawei has 32 reasons to deny Cisco's infringement allegations; Huawei has six reasons to deny the accusation of stealing trade secrets; Huawei has four reasons to deny allegations of corruption under customary law. " Huawei also demanded that "the court judge Cisco and ask the court to give Huawei sufficient compulsory compensation".
It is worth mentioning that the court then compared the source codes of Huawei and Cisco. Huawei's source code exceeds 2 million, and Cisco's source code exceeds 20 million, and the correlation between them is only 1.7%. Some people call it "2 million softwares, copying a software ten times bigger than you is equivalent to one thousand and one nights". Obviously, the situation of Huawei is changing.
On March 20th, 2003, Huawei established a joint venture with 3Com Company of the United States. The two sides set up a joint venture called Huawei 3Com. When Cisco sued Huawei, 3Com CEO Kraft said that he would correct Huawei's name. At that time, he told the media quite openly: "Huawei's engineers are very talented. They operate the latest equipment and software in the spacious office. They have the most modern robotic equipment I have ever seen. " I have been to Huawei many times and have been certified for two pages for eight months. After decades of career, I guarantee that Huawei's technology and strength are reliable. In case of infringement, 3Com will not bear the huge risk of establishing a joint venture with it.
In the face of Huawei's series of counterattacks, Cisco also has a premonition that it is difficult to solve Huawei's problems. Cisco seems to be afraid that things will get out of hand. After all, Huawei's counterattack may cause great harm to Cisco, and Cisco itself knows that this case is very vague. For these two companies, the result of a heavy blow must be mutual loss. Even if a political party wins, it will suffer heavy losses, so they decided to take a step back. On June 65438+1October 65438+1October 2003, Huawei and Cisco reached an interim agreement. Both parties accepted the inspection by a third-party expert and suspended the complaint for six months. The inspection results showed that Huawei was not injured. Of course, with such an assessment, the crisis will be lifted. The two companies finally reached an agreement and signed a settlement agreement on July 28, 2004. This agreement is beneficial to both sides. For Huawei, the complaint with Cisco has suddenly become a well-known brand in the United States in the fierce media reports. The most rare thing is that Huawei got the "legal admission ticket for overseas markets". No one doubts Huawei. Huawei has successfully won foreign customers and gained strength for the next overseas expansion. Cisco also temporarily prevented Huawei from entering the US market.
After the complaint, Cisco began to look for other ways to prevent Huawei from entering the US market. Private disclosure of Huawei's strong political color will have an impact on US national security, which the US government cannot afford. Therefore, with the intervention of the US government, the four major US operators and mainstream manufacturers announced that they would no longer use Huawei products. This is equivalent to the disappearance of Huawei in the US market. Faced with such a dilemma, Huawei can only helplessly announce the results.
In 2007, Huawei will provide the network company 3Com together with Bain Capital, a private investment company. The total transaction amount is expected to exceed $2 billion. After the successful acquisition, Huawei acquired 16.5% equity from 3Com. However, when all the dust settled, the U.S. government suddenly intervened, because Huawei would threaten the national security of the United States through the acquisition business. At that time, American defense and security experts believed that Huawei's ownership of important hardware and network components was worrying. They found that 3Com products contain very powerful intrusion detection technology, which can effectively help customers resist hacker attacks. The US Department of Defense is just one of 3Com's most important customers. If these sensitive technologies fall into the hands of Huawei, the consequences will be unimaginable. Under heavy pressure, Bain Capital had no choice but to withdraw from the transaction, and Huawei had to give up the acquisition.
20 10 Huawei plans to acquire Motorola's wireless network business. This time, it was also because "national security" was rejected by the US government. Finally, Noci acquired Motorola's wireless network business. In the same year, Huawei participated in the bidding of public utility network infrastructure construction in the United States. However, when it was successful, the U.S. government intervened again, directly intervening in Huawei's bid for the U.S. public utility network infrastructure contract. 20 1 1 The US government prevented Huawei from taking over the 3leaf system.
In 20 16, trump became the president of the United States and established the principle of "American priority", that is, giving priority to the development of American companies and restricting foreign companies that may affect American companies' entry into the American market. Its background is that the domestic manufacturing industry in the United States is shrinking, the unemployment rate remains high, and economic growth is slowing down. This will make it more difficult for Huawei to enter the US market. Huawei can't do business in the United States yet. But even if there is no American market, Huawei has invested heavily in R&D every year, which has laid a good foundation for its next impact on the American market.
Now, with the development of economy and national strength, more and more China companies are playing an important role on the world stage. I believe that in the future, more and more companies will be able to occupy a place on the world stage like Huawei.
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