Huawei. This week the Chinese company was the subject of a study that aimed to reveal the fact that its shareholders are not only composed of employees, but that there is control from the Chinese government. Two university professors have used publicly available information to try to prove that Huawei's shares are also owned by the government in Beijing, not just by nearly 100.000 of its employees, as the company claims.
Huawei. The company that launches the products sold globally, Huawei Technologies, is owned by a holding company, which in turn is owned by Ren Zengfei, and by another separate company, as you can see below. Analyzing the publicly available information, the professors came to the conclusion that apart from the percentage owned by Ren Zengfei, among the shares distributed to the rest of the shareholders there would also be some percentages that would be owned by the Chinese government.
Huawei. Statements after SERIOUS Accusations regarding Shareholdership
Huawei. In front of these accusations, the Chinese company defended itself saying that the entire control over the company is held by its founder, and the other employees of the company, who received shares. Huawei continues to maintain that it is a private company, fully owned only by people who work within it, without any other external entity having a say in how it conducts its business.
Through the Union of Huawei Investment & Holding Co., Ltd, Huawei implements an Employee Shareholding Scheme that complies with applicable laws and regulations. The Representatives' Commission is the organization through which the Union fulfills shareholder responsibilities and exercises shareholder rights. As Huawei's highest decision-making body, the Representatives' Commission elects members of the Board of Directors and the Supervisory Board.
Huawei. The company also says that it would not be controlled by any person who is an employee of the Chinese state, and this could be true, or it could be a lie that is very difficult to prove. Regardless of the situation, it is as clear as possible that Huawei has not yet managed to convince the whole world about what is behind the people who make important decisions regarding its evolution and the products it launches.
