1. Do you think that the Chinese government should intervene in the international trade market for Huawei. Defend your views.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 3.11A
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Can Huawei Overcome Roadblocks in its Quest for Global Markets?
Huawei Technologies Ltd. (Huawei) has been integral in the global markets of the US,
Australia, and the European Union for its telecom equipment.
In October 2019, Shenzhen-based networking and telecommunications equipment and
services company Huawei Technologies Ltd. (Huawei) unveiled its 14-port and 3-D
Hexa-beam antennas to address the challenges associated with the 4.5G and 5G era at
the 5th Annual Global Antenna and Active Antenna Unit Forum held in Paris.
Commenting on the launch, Zhang Jiayi, president of Huawei’s antenna business unit,
said, “Huawei focuses on satisfying the requirements of operators in the MBB (mobile
broadband) era.” 
Founded in 1987 in Shenzhen by Ren Zhengfei (Ren), a former military engineer in the
People’s Liberation Army (PLA) – the unified organization of the armed forces of China,
Huawei started as a sales agent for a Hong Kong-based company selling private branch
exchange (PBX) switches. Soon, the company innovated and started selling its own
PBX switches. Having established its domination over the Chinese telecommunications
market, the company entered the global markets of Russia and Africa in 1996 and later
mature markets such as the US and Europe.
The origin of Huawei Technologies Ltd. (Huawei) dated back to 1987 when Ren
Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA),
founded the company in Shenzhen with the aim of making it the backbone of China’s
communications industry.
The company started as a sales agent for a Hong Kong company selling private branch
exchange (PBX) switches with an initial investment of US$ 3400. By 1990, it had
acquired enough resources to open its first research laboratory. In the same year, i.e.
1990, the company made its own PBX and started selling the switches to hotel networks
at prices lower than those of imported devices.

1. Do you think that the Chinese government should intervene in the international trade
market for Huawei.


Defend your views.

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