The One Behind It All Chapter 44

Before 2003, Huawei's main development targets were developing countries. By 2004, its business had covered 77 countries around the world. Although coverage in developed countries reached 14, Huawei's main source of income and large orders at that time were still concentrated in markets other than Europe and the United States. Around 2004, Huawei's business development in these markets was relatively mature.

It is not difficult to understand why Huawei and other Chinese telecom equipment manufacturers are able to open up markets in Southeast Asia, the Middle East, Africa and Latin America. For customers in these developing countries, the performance of equipment produced in China is almost as high as that of Cisco, Nortel Networks and Alphabet. It is at the same level as similar products from European and American manufacturers such as Carter-Lucent, but the price is much lower.

However, the rapid growth of Huawei and other Chinese telecom equipment manufacturers has attracted the attention of foreign counterparts. Cisco accused Huawei of infringing its intellectual property rights in 2002. After that, Chinese manufacturers deliberately avoided the United States and turned to the Western European market.

By the end of 2007, Huawei's business development in Europe was approaching maturity, with its products and services basically covering all key European operators. As the European market matured, after 2008, Huawei's focus shifted to the North American market, dominated by the United States. This is also the path Huawei must take in its long-term strategy.

Similar to when Japanese companies entered the U.S. market in the 1980s, Chinese companies, including Huawei, are rapidly expanding their investments in the United States. Relevant data provided by Maryville University shows that the current number of investment projects by Chinese companies in the United States and Canada has reached 3,500, more than double that of five years ago. However, it is still very difficult for new entrants to enter the U.S. high-tech market. Chen Zhaohui, Huawei's senior vice president in charge of U.S. marketing and product management, said the company has consciously listed the U.S. market as the last big market to develop because it takes time to strengthen product quality and build its brand. He believes that US operators have very high requirements.