"A country without its own program-controlled switches is like one without an army." — Ren Zhengfei
Huawei is more than a company; it’s a symbol of China’s ascent on the global stage. Founded in 1987 by Ren Zhengfei, a former military engineer, Huawei transformed from a small trading outfit in Shenzhen into a telecommunications and technology titan, operating in over 170 countries. Its journey is one of ambition, innovation, and unrelenting controversy, woven into the fabric of China’s economic reforms, geopolitical tensions, and the race for tech dominance. In "House of Huawei," Eva Dou meticulously traces this saga—from humble beginnings to becoming a lightning rod in U.S.-China relations—while unraveling the enigma of Ren Zhengfei, whose vision and secrecy have shaped the company’s destiny. This book isn’t just a corporate history; it’s a lens into the clash of ideologies and the redefinition of global power dynamics.
The Ren Family: Roots of Resilience
The early life of Ren Zhengfei, born in 1944 in Guizhou, amidst war and revolution, shaped by a family of educators who valued knowledge over material wealth.
“The Cultural Revolution was a disaster for the nation, but for us, it was a baptism.”
Military Years: Forging Discipline
Ren’s time in the People’s Liberation Army (1968-1982), working on hidden infrastructure projects, instilled resilience and problem-solving under pressure.
“These years taught me duty and the ability to solve problems under pressure.”
Huawei’s Origins: A Shenzhen Start
Founded in 1987 with just 21,000 yuan, Huawei began as a reseller in Shenzhen’s Special Economic Zone, leveraging Ren’s military insights for growth.
“I had no intention of remaining a contract manufacturer; I wanted to build our own switch.”
Early R&D: The C&C08 Breakthrough
In 1993, Huawei’s bold investment in R&D led to the C&C08 digital switch, a game-changer that positioned it against global telecom giants.
“If this project failed, I’d fling myself out the window.”
State Ties: A Shared Mission
By 1994, Huawei aligned with China’s modernization goals, securing state contracts and support while navigating scrutiny over government links.
“Our success is tied to the nation’s progress.”
Sales Machine: Pack of Wolves
Huawei’s aggressive 1990s sales strategy, dubbed “wolf culture,” drove expansion into rural China, outpacing competitors with relentless hustle.
“We must be hungrier than anyone else.”
Global Expansion: Iron Army
From 1996, Huawei targeted developing markets, adapting to challenges with disciplined teams Ren called his “iron army.”
“We must prove our value to every customer, no matter where they are.”
Geopolitical Storms: Western Scrutiny
From 2009, Huawei faced bans and investigations in the West over security concerns, intensified by events like Meng Wanzhou’s 2018 detention.
“We have never engaged in any improper activity, and we invite scrutiny to prove it.”
Smartphone Triumph: A Thing of Beauty
By 2016-2017, Huawei overtook Apple as the world’s second-largest smartphone maker, marking a new era of consumer tech dominance.
“We’ve created something beautiful that the world wants.”
Future Uncertainties: Black Swan
Facing sanctions in 2023 and beyond, Huawei invests in 5G and AI, with Ren emphasizing adaptability in an unpredictable landscape.
“We must prepare for the unexpected and keep innovating.”
Ren Zhengfei’s story begins in 1944 in Guizhou, one of China’s poorest provinces, born into a family of educators who prized knowledge over wealth. His father, Ren Moxun, a school principal, spent scarce resources on books, fostering a deep respect for learning in young Ren. Amidst war and the Cultural Revolution, the family endured hardship, moving to escape conflict while facing persecution as intellectuals. This turbulent backdrop forged Ren’s perseverance, a trait that would later define his entrepreneurial spirit.
“The Cultural Revolution was a disaster for the nation, but for us, it was a baptism.”
Ren’s reflection captures the paradox of personal growth amidst national chaos, a theme that echoes through Huawei’s own battles against adversity.
The Ren family’s emphasis on education, despite societal upheaval, planted seeds of determination. Ren’s ability to rise above circumstances—studying intensely during the Cultural Revolution while others succumbed to despair—mirrors Huawei’s later defiance of odds in the tech world. This module isn’t just about origins; it’s about the bedrock of values that built a titan.
From 1968 to 1982, Ren Zhengfei served in the People’s Liberation Army, working as an engineer on military infrastructure, including a factory hidden in a cave to evade Cold War airstrikes. Stationed in remote areas under harsh conditions, Ren developed technical expertise and a resilience that became Huawei’s cultural cornerstone. His military tenure, though downplayed by the company, shaped his leadership with a focus on discipline and duty.
“These years taught me duty and the ability to solve problems under pressure.”
This quote underlines how Ren’s formative military experience translated into Huawei’s problem-solving ethos, evident in its rapid crisis responses.
Ren’s military background isn’t just a footnote; it’s the crucible where his strategic thinking and relentless drive were honed. The discipline of those years—evident in Huawei’s boot camp-style training for employees—reveals why the company often operates with a soldier’s precision, a key to understanding its global combativeness.
In 1987, with a modest 21,000 yuan (a few thousand dollars), Ren Zhengfei founded Huawei in a small Shenzhen apartment. Then a nascent Special Economic Zone, Shenzhen’s experimental capitalist spirit offered fertile ground for entrepreneurs like Ren. Starting as a reseller of imported telecom equipment, Huawei capitalized on China’s infrastructure boom, with Ren’s military insights aiding early relationships with local officials.
“I had no intention of remaining a contract manufacturer; I wanted to build our own switch.”
Ren’s ambition to innovate rather than imitate set Huawei apart from the start, a vision that would drive its R&D obsession.
Huawei’s humble beginnings in Shenzhen mirror China’s own transformation. This module highlights how Ren leveraged the city’s “Shenzhen speed” to lay a foundation for growth, turning a small venture into a national player. It’s a story of grit and foresight, showing how environment and personal resolve can ignite monumental change.
By 1993, facing fierce competition from foreign telecom giants, Ren made a daring move to invest heavily in R&D despite financial strain. The result was the C&C08 digital switch, capable of handling 10,000 calls, a breakthrough that propelled Huawei into the big leagues. Developed under grueling conditions—engineers sleeping on cots in mosquito-infested rooms—this innovation marked Huawei’s shift from reseller to creator.
“If this project failed, I’d fling myself out the window.”
Ren’s dramatic commitment reflects the high stakes and personal investment in Huawei’s R&D, a gamble that redefined its trajectory.
The C&C08 wasn’t just a product; it was Huawei’s declaration of independence from foreign tech reliance. This module dives into the raw determination and resourcefulness behind this milestone, illustrating how innovation under pressure became Huawei’s hallmark, setting the stage for global competition.
From 1994, Huawei cultivated ties with the Chinese government, aligning its mission with China’s push to modernize telecommunications. Meetings with leaders like Jiang Zemin and state contracts cemented Huawei’s role as a domestic champion, though this relationship later fueled international suspicion. Government support, including favorable policies, helped Huawei secure a foothold in China’s market.
“Our success is tied to the nation’s progress.”
Ren’s words reveal Huawei’s strategic alignment with national priorities, a double-edged sword of opportunity and scrutiny.
This module explores how Huawei’s state ties provided critical early support but also sowed seeds of global controversy. It’s a nuanced look at how corporate success in China often intertwines with political agendas, offering insight into why Huawei remains a geopolitical flashpoint today.
In the 1990s, Huawei’s sales strategy, dubbed “wolf culture” by Ren, drove rapid growth across rural China. Sales teams, enduring harsh conditions, targeted overlooked markets, outworking competitors with a predatory focus. This relentless pursuit earned Huawei the nickname “pack of wolves,” embodying Ren’s ethos of hunger and teamwork.
“We must be hungrier than anyone else.”
Ren’s rallying cry encapsulates Huawei’s aggressive sales ethos, a cultural driver behind its early dominance in China.
This module unpacks how Huawei’s sales machine turned underdog status into market leadership. The “wolf culture” isn’t just a metaphor; it’s a strategic mindset that prioritized grit over comfort, a key to understanding Huawei’s ability to scale rapidly in competitive landscapes.
Starting in 1996, Huawei ventured abroad, targeting developing markets in Asia, Africa, and Latin America where Western competition was thinner. Ren’s “iron army” of disciplined teams adapted to cultural and logistical hurdles, offering low-cost, tailored solutions. By 1999, Huawei had footholds in multiple countries, laying groundwork for global ambitions.
“We must prove our value to every customer, no matter where they are.”
Ren’s focus on customer-centricity fueled Huawei’s international success, reflecting a commitment beyond mere profit.
First International Venture
Huawei attends a convention in Moscow, leading to a joint venture with Russia’s Beto for C&C08 production.
1996
Overseas Posting Policy
Huawei mandates international stints for executive promotions, building a hardened global workforce.
1998
Multi-Country Presence
Huawei establishes operations in several developing nations, marking early global traction.
1999
Huawei’s early global expansion showcases adaptability and strategic focus on underserved markets. This module highlights how Ren’s military-inspired discipline translated into international growth, offering a window into Huawei’s playbook for navigating unfamiliar terrains with precision.
From 2009, Huawei’s Western expansion met intense scrutiny, with the U.S. and U.K. raising national security concerns over alleged government ties. Investigations, like the 2012 U.S. House probe, and events like Meng Wanzhou’s 2018 detention in Canada, escalated tensions, limiting market access and casting Huawei as a geopolitical pawn.
“We have never engaged in any improper activity, and we invite scrutiny to prove it.”
Ren’s defiance amidst accusations underscores Huawei’s struggle to balance business autonomy with geopolitical perceptions.
This module delves into how Western distrust reshaped Huawei’s trajectory, from blocked contracts to sanctions. It’s a critical look at the intersection of technology and politics, revealing why Huawei’s story is as much about global power dynamics as it is about corporate innovation.
Between 2016 and 2017, Huawei’s smartphone business surged, with models like Mate and P series gaining global acclaim. Overtaking Apple as the second-largest smartphone maker, Huawei showcased innovation and marketing prowess, diversifying beyond telecom into consumer electronics with stunning design and performance.
“We’ve created something beautiful that the world wants.”
Ren’s pride in Huawei’s consumer products reflects a shift from infrastructure to personal tech, a milestone of aesthetic and technical achievement.
Huawei’s smartphone success marked a pivot to consumer visibility, broadening its identity. This module explores how design and innovation captured global markets, illustrating Huawei’s ability to adapt and excel in diverse tech arenas, a testament to its relentless evolution.
By 2023, Huawei faces a “black swan” landscape of unpredictability, as described by Ren. Despite U.S. sanctions limiting access to tech, Huawei invests heavily in 5G, AI, and semiconductors. Ren’s focus on adaptability signals a determination to innovate through geopolitical and market challenges.
“We must prepare for the unexpected and keep innovating.”
Ren’s forward-looking mindset highlights Huawei’s resilience, a core trait as it redefines its future amid uncertainty.
This module examines Huawei’s strategic pivots in response to sanctions and global shifts. It’s a glimpse into the company’s ongoing reinvention, emphasizing why, despite obstacles, Huawei remains a formidable force in tech, poised to shape the future with bold innovation.
