Science and Technology Review

February 19 night, according to foreign media reports, Huawei has decided on Saturday to accept the request of the U.S. Committee on Foreign Investment to revoke the acquisition of 3Leaf Systems patented technology transactions.

This global expansion of Chinese enterprises and some skepticism among national governments, the dramatic recent changes in the conflict. Government is worried that some countries allow Chinese enterprises to enter, make them an increasingly powerful China by rival attacks.

Huawei Saturday morning said it was a difficult decision. However, we have decided to accept the recommendations of the U.S. Committee on Foreign Investment to revoke the acquisition of specific assets 3Leaf applications.

This position statement four days, compared with Huawei is a surprising turn. Huawei said at the time it will not accept the recommendations of CFIUS, to give up last May’s 200 million acquisition of 3Leaf patent transactions.

Huawei’s refusal to compel President Obama to personally make a decision on this transaction. Obama in 15 days to rule on the deal. Huawei’s approach to surprise some observers, because most of the Committee on Foreign Investment in the United States pointed out that the proposed transaction may be rejected, have chosen to voluntarily exit.

Huawei did not immediately comment on the matter.

Some legal experts pointed out that Huawei has not been very good advice, without first seeking approval from the U.S. Committee on Foreign Investment will complete the transaction. Some say calmly refused to withdraw the Huawei transaction approach is wise.

The incident is the latest Huawei to enter the North American episodes. In 2008, because the United States Foreign Investment Committee does not approve, Huawei had to give up the acquisition of 3Com.

According to the British “Financial Times” reports, to consider the acquisition of sensitive U.S. government agencies are debating on how to deal with Huawei, the Chinese government security experts, this family of software and telecommunications equipment manufacturers have strong suspicions.

Informed sources said last week, despite Huawei’s bid higher than competitors, Huawei bid for U.S. private broadband Internet software provider 2Wire’s efforts are narrowly lost, 2Wire was Britain’s Pace to buy 475 million U.S. dollars.

This month, Huawei, Motorola mobile networks on the acquisition of the infrastructure sector has not succeeded, this piece of business was 1.2 billion Nokia Siemens to buy.

According to informed sources introduced in these two transactions, one of the Huawei can win regulatory approval of a serious problem, both in the bidding process play a role, forcing Huawei proposed a higher premium. Both transactions must be approved by CFIUS, which is a point of view of national security to consider foreign acquisitions of inter-departmental group.

Foreign Investment Committee’s deliberations are highly confidential, and for Huawei in the U.S. in the future, the U.S. government refused to give his thoughts. But people familiar with related processes of the sources said, in view of the stated intention of Huawei in the U.S. market expanded Ye Wu, Ge Zhengfujigou Zhengzaijinhang preparations Yipianweilai the start Shen Yi Gong Si.

There are two factions within the U.S. government point of view. Pragmatic view, the Foreign Investment Committee shall approve a future transaction, as it will allow the Government to negotiate the so-called a mitigation agreement, which set strict conditions and security requirements, has the potential to operate US-Fang Duihua to gain valuable internal insight. Some people claim that Huawei’s close ties with the Chinese military, but Huawei denied that.

Those who believe that the future shall release a transaction involving Huawei officials pointed out that the company has with the Motorola brand sold to U.S. customers of about 800 million U.S. dollars of products. Huawei and Motorola had a long-term business relationship, this relationship has recently broken.

Foreign Investment Committee and other non-American companies – such as Alcatel Lucent – moderated negotiated agreement, including screening of employees and third-party audit requirements.

Huawei negotiations with any ease agreements may be made more stringent requirements, such as forcing the Chinese firm to the U.S. to turn over their source code, which is expected to enable the U.S. to insight into China’s communications networks.

But others strongly oppose this attempt to force Huawei abide by the rules of practice. One familiar with the Foreign Investment Committee procedures that a former official in the George W Bush in power, the government in the U.S. technology group Huawei, 3Com launch joint bid, it had also launched a similar debate.

Huawei eventually forced to give up bid, because the situation has become very clear: the company will be the United States on national security grounds, stop the acquisition.

“At that time, the conclusions of the majority of national security agencies are, even if the government got the source code, so that we can not have enough insight into the usefulness of Huawei window and are difficult to Dingli enough to ensure safety procedures,” the former official said.

While the U.S. government failed to completely prevent Huawei to enter the U.S. market (the company has signed contracts Clearwire and Leap), but most experts agree that the Government has successfully prevented a large U.S. telecommunications companies – such as AT & T and Verizon – to buy Huawei’s equipment .

Even if the U.S. government in such equipment negotiations and no formal say, but it closely Huawei is well known, the government of many large telecommunications companies major clients, which makes the purchase decisions in business very influential.

Huawei settle down, in the United States to identify new acquisition targets occasion, the company’s future in the United States will ultimately depend on which faction concept (school of pragmatic, ideology means darker faction) prevail.

Nokia Siemens Networks and Huawei to intense competition in the world’s second largest wireless equipment manufacturers, when the title, Noci yesterday suddenly announced a 12 billion acquisition of Motorola’s wireless network assets in the news, according to media reports, and Noci competition is Motorola’s wireless assets Huawei, Nokia Siemens Networks Huawei’s defeat means victory, and this long coveted Huawei North American market, no doubt, is a major blow.

Yesterday, both Noci or Huawei do not want to make a further response to this argument. Media, Huawei for this bid, had hired local experts in the United States to lobby the government, but until Nokia Siemens announced the acquisition of results, Huawei and Motorola did not formally recognize Huawei whether to participate in bidding, quotations, and ultimately why the exit.

Motorola has flown to North America, the assets involved in the integration Noci Zhang Zhiqiang, President Greater China, yesterday received the “First Financial Daily” in a telephone interview, he said, to income, Noci acquisition of Motorola’s wireless assets, to consolidate its global infrastructure facilities in the field of the status of the second-largest maker. According to 2009 income, Huawei revenue of 21.5 billion U.S. dollars, Noci 176 dollars, Huawei for the first time beyond the Noci, topped second place, but Noci has been for the caliber of other statistical data to prove they are still the second largest equipment manufacturers .

Motorola completed the acquisition of wireless assets, Noci’s total sales volume is expected to reach 17.6 billion +37 100 million U.S. dollars, which is 21.3 billion U.S. dollars, 21.5 billion U.S. dollars with Huawei comparable, but the acquisition needs to be completed by the end of 2010, not will affect the financial results of Nokia Siemens Networks in 2010, so in a short time can not see exactly who is superior Noci and Huawei.

Pattern or change equipment manufacturers

To be sure, if excluding the acquisition and integration risks, Noci is being acquired in this way the rise of a strong return to the road. This will also affect the competitive landscape throughout the equipment manufacturers. So far, the top three in the North American market, equipment manufacturers: Ericsson, Alcatel-Lucent and Nokia Siemens Networks will complete the transaction, are all ways to enter through the acquisition of Huawei and other Chinese equipment manufacturers in the North American market has been hovering outside the door, how to broke into the house and to no avail.

Had an advantage in North America into recession, Motorola have other equipment manufacturers “route through” the last chance to enter North America, the acquisition is completed, the pattern of the North American market will re-enter a tripod for steady state, Huawei and other Chinese equipment manufacturers hope to gradually win the way one by one operator, “self” to enter, to pay the costs and difficulties will be much larger.

In addition, Nokia Siemens Networks won the Motorola wireless assets, its “consolidation of the world’s second largest equipment manufacturers,” the throne also kill two birds with one stone meaning. According to report, Motorola is a significant part of the North American market of wireless equipment, Huawei’s products are OEM.

Yesterday, Noci do not want to evaluate competitors, but has repeatedly stressed that Noci in production and R & D has a comprehensive product line. Shows that Huawei will be affected multiple. Huawei has had an internal article points out that Huawei has just narrowed the gap with competitors, but the industry’s largest merger so that the gap has narrowed it suddenly widened, Huawei has to be straight backs, patted the soil body and began the long arduous more trek.

Bargain sale?

By The campaign, like Ericsson, Nokia Siemens Networks as the purchase method to successfully enter the North American market. According to Zhang Zhiqiang introduced before the North American market share of Motorola is 8%, 6% Noci, acquisition, Noci to 14% of the share of North America’s third-largest wireless equipment manufacturers.

Year to 1.13 billion U.S. dollars, Ericsson won the Nortel beat Noci when Noci executives had “sour” to express, Noci offer very reasonable, not necessary at all costs in the final process. The implication is that Ericsson 1.13 billion bid is too high, Noci final offer, and 6.3 billion dollars. But after one year, Noci showed the more generous on – 12 million. Simply to enter the North American market as the price of view, or the acquisition of Motorola’s acquisition of Nortel’s wireless assets can get the North American market share, compared with Nortel’s share of the North American market that year was about 12%, higher than the Motorola’s 8 %.

Meanwhile, the acquisition of Nortel, Ericsson, consolidated the leading market share in Korea, while Nokia Siemens Networks will become Japan’s largest foreign supplier of wireless equipment. Noci concerned, due to different periods have different marketing strategies, new CEO Sullivan in Noci after taking office, Noci has the United States, Japan, India and China identified four strategic markets, the acquisition of two direct stability major strategic market share.

Slightly Unfortunately, Noci won the Motorola-related business development, production, sales and service, the acquisition does not cover intellectual property.

Zhang Zhiqiang, said the acquisition, Noci CDMA and WiMax will be two new business and enhance the LTE, GSM, WCDMA market share and size. He also stressed that this part of Motorola’s acquisition of the asset itself is profitable, will Noci bring positive cash flow and higher income.

This was Ericsson, Nortel won in contrast to the assets, then Nortel has been plunged into a loss of assets. According to report, Noci won the Motorola wireless assets in 2009 sales revenue of 3.7 billion, a slight profit.

Nokia Siemens Networks said the acquisition be funded out of themselves, including the cooperation with banks and financial groups, parent does not need to pay, but it will enable Nokia Siemens Networks continue to integrate, or even financial loss on the road traveling.

Noci 2009, only 12.574 billion euros revenues, loss of 1.639 billion euros, excluding one-time write-off if the cause of the loss of intangible assets, Noci first profit 28 million euros, while Motorola’s acquisition of the assets, will result in 1.2 billion U.S. dollars to re- the debt burden.

“Fortune” magazine published a Global 500 list in 2010, the Chinese telecommunications equipment provider Huawei newcomers to 21.8 billion U.S. dollars and net profit of 2.67 billion U.S. dollars annual sales of No. 397.

Ranking the top ten enterprises of this, a total of three selected Chinese companies, including China Petroleum & Chemical Corporation ranked 7th highest among the Chinese State Grid No. 8, China National Petroleum Corporation No. 10.

The list, a total of 54 Chinese companies the list, including China Mobile ranked 77, sales of 71.749 billion U.S. dollars. China Telecom ranked No. 204, sales of 35.557 billion U.S. dollars.

Huawei’s overseas market is suffering from the problem, within one month of the Indian Ministry of the Interior asked Huawei disclose full details of company ownership.

A time when 3G licenses will soon release a local occasion, Huawei India is caught in a trouble, a few months ago that the company thought it a winner. This incident shows that, despite Huawei’s overseas strategy of targeting the rich had achieved remarkable results, but the road to the future and more difficult challenges.

Inventory of more than 60,000 employees of Huawei’s ownership structure is not an easy thing, Huawei said the company now owned by the employees, the world’s 95,000 employees in nearly 2 / 3 held by the Company.

Huawei India is the most important overseas in the Asia Pacific market. Huawei last fiscal year in global revenue, India contributes about 1.4 billion U.S. dollars, accounting for 11%, more than doubling the previous year.

Huawei Technologies India to ease deep-rooted suspicions against Huawei in India, the charm offensive, the staff sent to India, India is now fashionable to take the name of the Indian clothing. YAO Wei-min, vice president of Huawei has also taken the “Rajeev (Rajeev)” as his Indian name.

Huawei made a landmark in the overseas market breakthrough in 2005, the Love for the first time overseas sales of domestic contracts. Meanwhile, after nearly three years of continuous observation, Huawei Vodafone preferred supplier of communications equipment. This three-year study project complicated but long, including not only the situation of Huawei’s operations, management, service response time, also includes all aspects of daily life, and the staff.

Prior to working with Vodafone, Huawei has always been the situation in Europe can not be opened, with a British veteran operators of this recognition, as to get a letter of recommendation from the aristocracy, Huawei in the European market stopped heel.

Ericsson’s project manager then often complain that, if the customer’s project services we sent four engineers, Huawei will be sent to the 40. Huawei patiently eroding edge of telecommunications equipment in Europe, not only has the price advantage, but also by sea of strategy. The end of 2007, Huawei has become Europe’s leading operators of all partners.

But the North American market, Huawei is still a problem, it is important Huawei has always wanted to enter the overseas market. Zhengfei early in his speech said the internal Huawei, Huawei has been serving the world’s 50 carriers in 45, but which lack the four major U.S. carriers. As the impact of Vodafone in Europe, not the cooperation of these four, which means Huawei could not be recognized in the North American market.

Huawei in overseas markets mixed feelings

01 India

India’s state-owned operator BSNL Huawei three breach of contract, a total of nearly 10 billion U.S. dollars worth of items recovered were forwarded to the French and Indian joint venture company of Alcatel-ITI and Ericsson.

02 United States

The largest U.S. mobile operator Verizon announced 4G Long Term Evolution in the list of suppliers, Ericsson and Alcatel-Lucent selected as the initial LTE network in the United States to deploy the first equipment manufacturers project, Huawei is still unable to enter the U.S. mainstream mobile operators .

03 Africa

Huawei has obvious advantages in parts of Africa, southern Africa has the second largest integrated equipment suppliers, the largest CDMA product provider, the largest supplier of NGN products, largest supplier of transmission products, the third largest GSM products suppliers. Ericsson’s main rivals this year, revenue fell more obvious in Africa.

04 Europe

Huawei and Vodafone and other operators all have top-level European cooperation, but the European market is still dominated by Ericsson. In some areas can have equal shares, in the known potential of LTE 4G market, Huawei and Ericsson also announced that the Swedish operators shared the world’s first LTE TeleSonera commercial networks.