[NEWS] Huawei’s side businesses keep it all in the family – Loganspace AI

[NEWS] Huawei’s side businesses keep it all in the family – Loganspace AI

SHENZHEN, China (Reuters) – On a scorching summer season morning at Huawei’s smooth European-themed campus exterior of Shenzhen, a particular person similar to a youthful version of company founder Ren Zhengfei became once dressing down two subordinates.

FILE PHOTO: Huawei founder Ren Zhengfei attends a panel dialogue on the corporate headquarters in Shenzhen, Guangdong province, China June 17, 2019. REUTERS/Aly Tune/File Picture

“Exercise your brain to remember!” he scolded, interestingly upset at how they were dealing with web site visitors on the lavish facility, which aspects replicas of European cities and monuments.

The particular person became once Steven Ren Shulu, 63, the youthful brother of Ren Zhengfei, who joined Huawei in 1992 and is now supervisor of the board. The stumble upon became once witnessed by likelihood by a Reuters reporter all the plot thru a visit to the campus in August.

Huawei would be with out a doubt one of China’s most worldwide firms – with larger than 180,000 workers in larger than 170 nations working a telecommunications and technology exchange that generates larger than $100 billion per annum – on the opposite hand it still has aspects of a family company, with contributors of Ren’s family playing key roles in web of aspect businesses, quite loads of which beget nothing to enact with telecoms.

Frequently those aspect businesses, which fluctuate from hotels to meals and wine, cater mainly to the Huawei workers and customers.

The fair of Ren’s daughter, chief monetary officer Sabrina Meng Wanzhou, is widely acknowledged, especially within the wake of her arrest in Canada final December on U.S. charges touching on to sanctions violations.

A ways much less visible are Ren’s brother, son and wife, nonetheless all play tall roles within Huawei’s subsidiaries.

The 74-year frail Zhengfei Ren formally owns correct 1.14 percent of privately held Huawei, nonetheless retains absolute authority, in accordance to insiders on the company, the place he holds veto vitality and the place his speeches are frequently circulated to all team for witness.


With the title of Chief Logistics Officer at Huawei, youthful brother Steven Ren’s tall transient entails overseeing construction, catering and hospitality.

That entails the final section of the lavish smooth Songshan Lake campus in Dongguan, with areas of work for 25,000 workers, as effectively as a smooth house block for workers shut to Huawei’s Shenzhen headquarters that is anticipated to be built by 2023.

Huawei declined to answer questions about the scope of its housing advantages for workers.

It is no longer outlandish for mountainous Chinese language affirm-owned or personal firms to uncover infrastructure including housing for workers and to offer hospitality for visiting possible customers, talked about Colin Hawes, an associate professor on the College of Abilities, Sydney who specializes in Chinese language corporate governance.

Ren Zhengfei’s son, 44-year-frail Ren Ping, is now the boss of Shenzhen Smartcom Alternate Co. Runt, a Huawei subsidiary whose holdings encompass larger than a dozen hotels and serviced residences in China, Thailand, Saudi Arabia and South Africa. The hotels moreover mostly relief Huawei workers and purchasers, though some – such because the Amber Residence in Nanjing – could perhaps perhaps perhaps even be booked by anyone online.

At the 5-superstar Amber High Hotel in Dongguan, next to Huawei’s smooth campus, the tidy rooms near with Huawei AI audio system as effectively as a varied TV channel with clips of Huawei executives’ most recent speeches.

Huawei declined to make Steven Ren, Ren Ping or but another Smartcom executive accessible for interview.


Ren Ping is moreover president of Shanghai Mossel Alternate Co., Ltd, a subsidiary the place Ren Zhengfei’s wife moreover works, in accordance to Chinese language company registration data. Named after Mossel Bay in South Africa, the corporate sells imported foods from across the enviornment including Huawei-labeled wines, top price pork and engrossing rice, in accordance to its web site.

Most of its patrons are internal, though Mossel’s e-commerce platform and bricks-and-mortar stores on Huawei campuses are delivery to exterior customers too. Huawei did no longer answer to questions about why it enviornment up Mossel in 2010, though a narrative within the Guardian newspaper in April quoted a spokesman asserting it arose after the corporate took half-price within the originate of wine and pork from an Argentinian buyer seeking to manual clear of forex controls.

Some workers told Reuters they chanced on the Mossel goods too costly, though others talked about they cherished its top quality number of wines and foods from across the enviornment – and that the Huawei emblem on the merchandise make for correct corporate gifts.

Huawei’s leisure slump subsidiary, HWTrip.com, but another half of Ren Ping’s Smartcom exchange, appears to beget fallen victim to the U.S. authorities’s campaign against Huawei: a belief on its web site says it closed in August as Huawei obligatory to “point of interest on its principal channel all the plot thru struggle instances”.

Hawes talked about Huawei’s family connections were nothing out of the standard for personal firms in China.

“It’s partly a enviornment of whom the CEO can trust, and moreover a Confucian-style sense of obligation to portion one’s success with family members,” Hawes talked about.

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Ren has talked about on multiple instances that none of his family members, including Sabrina Meng, would prevail him as Huawei CEO.

Interviews with nearly a dozen workers grew to change into up no signs of resentment about the fair of Ren’s family members.

“I don’t care what the boss’s family does as lengthy as I uncover my pay and dividends,” talked about one employee-shareholder who declined to be named.

Reporting by Sijia Jiang; Making improvements to by Jonathan Weber and Alex Richardson

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