Huawei Prepares for Change of Guard 任正非或准备告别华为

By newsdoug on February 17, 2012

Huawei's Zheng preparing to step down Chinese telecoms star Huawei seems to be in a state of constant change these days in its bid to shed its image as a stodgy government-controlled company, with new comments from Ren Zhengfei indicating its media-shy founder may be preparing to step down soon. Ren’s departure, if it really happens, could remove one of the biggest PR obstacles for Huawei in its drive for global respect, since many of the questions about the company’s government and military ties stem from his past as an army engineer and a stealthy demeanor that has seen him grant only a handful of interviews in Huawei’s history. According to reports in the Chinese media, Ren has said that if Huawei employees believe he is unneeded and voice a desire for him to go, then he thinks that would be a good thing. (Chinese article) The wording of the remarks is a bit awkward, but the meaning behind Ren’s words certainly seems to imply that he may soon step down and let a new generation of younger, more PR-savvy professionals, including a growing number of foreigners, take over at the helm of the company as it looks for more breakthroughs in lucrative western markets, especially the US, where it has yet to score a major sale amid suspicions about the company’s government ties. These latest comments would follow similar words from Ren last year, and could presage his actual resignation by the middle of the year. Such a move would be just the latest change at Huawei, which is not only bringing in a new generation of leaders but is also making a major push into the less sensitive smartphone space. (previous post) Huawei has been on a longer term quest for acceptance by western governments for much of the last year, setting up a number of locally-based advisory boards in overseas markets and hiring well-connected local advisers to help it convince foreign governments that it’s not just a spying arm of Beijing. As a long-time follower of Huawei, I personally do think that Ren’s departure would remove a major obstacle to the acceptance of this company by foreigners, as his background from the People’s Liberation Army is clearly one of the company’s biggest image problems, and his background as an engineer and bureaucrat aren’t really the kind of face that a major company like Huawei should present to the world as its leader. Of course Ren’s departure won’t solve Huawei’s credibility issues immediately, but it should certainly help over the longer term. Accordingly, I’ll repeat my previous assertion that the current PR offensive could finally bear fruit as early as next year, when it could finally score its first major US deal after the country’s presidential election this fall.

Bottom line: The likely departure of Huawei’s enigmatic founder Ren Zhengfei this year will remove a major obstacle for the company in its quest for global credibility.

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