Huawei, The Chinese Equipment Maker Accused Of Spying, Has Long Relied On IBM

Huawei charles dingCharles Ding is Huawei’s top executive in the US.

Photo: Bloomberg TV

This week, a congressional report warned the U.S. government and American companies from doing business with Chinese network-equipment maker Huawei, saying it benefitted from state assistance and labelling it a security threat.Huawei and China have lashed back at the report’s claims. A Chinese minister called them “groundless accusations.”

But one thing’s not in dispute: Huawei has gotten help from an icon of American technology, IBM, on its rise to the top, the Wall Street Journal reports.

IBM consultants helped Huawei modernize its management processes, expand research and development internationally, and win customers, especially in Europe, Huawei executive Charles Ding told the Journal. IBM also sold Huawei chips and other technology.

Some say the congressional report could spur a trade war if the result is that Huawei gets shut out of the U.S. market in favour of American companies like Cisco.

Huawei’s ties to IBM show how complex and intertwined the business world’s relationships are.

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