A contingent of Chinese companies led by technology giant Huawei is turning the world’s biggest wireless trade fair into an opportunity to show their muscle in the face of Huawei’s blacklisting by Western nations concerned about cybersecurity and escalating tensions with the U.S. over TikTok, spy balloons and computer chips.
After three years of pandemic disruption, they are among
tens of thousands in Barcelona for MWC, also known as Mobile World Congress, an
annual tech industry expo starting Monday where mobile phone makers show off
new devices and telecom industry executives peruse the latest networking gear
and software.
Out of 2,000 exhibitors and sponsors, 150 are Chinese
companies and Huawei Technologies Ltd. has the biggest presence. The smartphone
and network equipment maker expanded its footprint by 50% from last year and is
taking up almost an entire vast exhibition hall at Barcelona’s Fira convention
center, organizers said.
That is striking considering that Huawei has been at the
center of a geopolitical battle over global technology supremacy that’s left
parts of its business crippled by Western sanctions.
The U.S. three years ago successfully pushed European allies
like Britain and Sweden to ban or restrict Huawei equipment in their phone
networks over fears Beijing could use it for cybersnooping or sabotaging critical
communications infrastructure — allegations Huawei has denied repeatedly.
Japan, Australia, New Zealand and Canada have taken similar action.
Brian Chamberlin, executive adviser at Huawei’s wireless
carrier group, said “the sanctions have had a big impact” but the company is
“not going to try to break any of those rules.”
“But at the same time, that’s not going to slow us down from
delivering innovation, innovative solutions,” he said at the expo. “We will
continue to do business with companies and countries that want our support.”
Huawei’s supersized presence at the show is a sign of
defiance, said John Strand, a Danish telecom industry consultant.
Huawei wants to “give Biden the finger,” Strand said of the
U.S. president. The company’s message, he said, is: “Despite the American
sanctions, we are alive and kicking and doing so well.”
U.S.-China tech tensions have only grown.
A suspected Chinese spy balloon downed by a U.S. fighter jet
sparked acrimony between Beijing and Washington in recent weeks.
U.S. authorities have banned TikTok from devices issued to
government employees over fears the popular Chinese-owned video sharing app is
a data privacy risk or could be used to push pro-China narratives.
The U.S. also is seeking to restrict China’s access to
equipment to make advanced semiconductors, signing up key allies Japan and the
Netherlands.
That followed the MWC expo four years ago becoming a
battleground between the U.S. and China over Huawei and the security of next
generation wireless networks. In a keynote speech, a top Huawei executive
trolled the U.S. over its push to get allies to shun the company’s gear.
Huawei hasn’t gone away, and the dispute continues to
simmer. Washington widened sanctions last month with new curbs on exports to
Huawei of less advanced tech components.
Still, the company has maintained its status as the world’s
No. 1 maker of network gear thanks to sales in China and other markets where
Washington hasn’t been so successful at persuading governments to boycott the
company.
Strand, who has been attending MWC for 26 years, said Huawei
wants to show the world it’s pivoting away from mainly making networking gear —
the hidden plumbing such as base stations and antennas connecting the world’s
mobile devices — and becoming an all-round tech supplier.
The company is reinventing itself by supplying hardware and
software for cargo ports, self-driving cars, factories and other industries it
hopes are less vulnerable to Washington.
“Since MWC is a global event, they (Huawei) will want to
communicate on this and showcase that they are still a key player in the
telecom and high-tech industry,” said Thomas Husson, a principal analyst at
Forrester Research.
The company’s presence is so big simply because of “pent-up
demand,” said Chamberlin of Huawei.
“We have been locked into China for the past three years due
to the COVID restrictions. So this is really the first time we’ve been able to
engage with our customers,” he said.
Huawei also makes smartphones but sales outside China
cratered after Google was blocked from providing maps, YouTube and other
services that usually come preloaded on Android devices.
“The Huawei consumer brand has collapsed in Europe,” Husson
said. At MWC, “Huawei may well announce new consumer smartphones and new
consumer devices, but the brand has lost momentum and these announcements are
primarily for fast-growing markets outside the U.S. and Western Europe.”
At Huawei’s pavilion, staff showed visitors the latest 5G
antennas alongside equipment for older generations of cellular networks that
still account for much of the company’s business. Optical networking switches
and new flexible fiber cable for home networking were displayed inside a VIP
area, while smartphones and other consumer devices like earbuds were laid out
at the entrance.
Huawei is just part of the larger Chinese delegation, whose
turnout is getting a boost from China lifting all COVID-19 travel restrictions.
ZTE, another Chinese tech company that had been sanctioned by the U.S., plans
product launches at MWC.
Chinese mobile phone makers Honor, Oppo and Xiaomi will have
a strong presence, said Ben Wood, chief analyst at CCS Insight. Honor was
Huawei’s budget brand but was sold off in 2020 in hopes of reviving sales by
separating it from the sanctions on its corporate parent.
“The removal of COVID restrictions in China has made it
possible for these manufacturers to attend the show in force,” Wood said. “They
are all keen to establish themselves as the ‘third alternative’ to Apple and
Samsung in European markets and see MWC as a pivotal event to do that.” -AP
