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by stuqqq 2379 days ago
I attended a talk by a successful Chinese entrepreneur who sold his company after only three years. We asked him why he sold it so early. He said there is no pure businesses (especially when you become big) in China . There are only “political businesses”. Everyone has to work with the government and plays dirty in order to survive. So he wanted out.

To be honest, as a Chinese, I don’t believe the claim that Huawei has no government ties. But I don’t think it’s what Huawei wants.

2 comments

China’s ability to fire the CEO of Cathay Pacific shows how irrelevant it is to ask who technically owns Huawei. What matters is whether the state has effective control, not legal control, and we know the answer to that for any company in or even near China.

- By Someone

It depends how you define government tie. If it is about corruption, yes and maybe. Government are the biggest buyer in many cases, they have development funds to sponsor companies. Sometimes, having a good relationship with some officials may give you business or whatever. Companies in China won't be independent. They will be asked to help local economy. The government needs them to help reducing poverty for example, even big companies like Huawei they will need to send people to rural areas to help poor area to develop. They cannot just give money, they actually have to find solution for a village to develop. Having a good relationship with the government is essential for all big businesses around the world. Government is the biggest customer for Huawei after all.