While the U.S has been accusing Huawei of installing backdoors on its networking equipment that can be used to steal sensitive user data, this time Huawei is reportedly moving its senior executives and scientists linked to the U.S. to its subsidiaries over concerns that they could be secretly contacted by American agents who might force them to reveal sensitive company information.

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In simpler words, Huawei is said to believe that the American administration could infiltrate the former’s task force hailing from the US posing a great threat to the company’s classified data that includes its future roadmaps. Until now, several Huawei executives with senior research and development positions, including Asian-Americans, have left the company or been moved claimed Nikkei’s sources.

A couple of such Huawei officials include Sunhom Steve Paak and Wang Hsin-shih. The former has reportedly been moved to HiSilicon Technologies to serve as the chief technology officer. On the other hand, the latter has made an abrupt exit from the company. While the sources questioned the two employees and Huawei, they either did not reply or decided not to make any comments on this report.

As of now, the Chinese corporation has laid off 70% of its employees at one of its U.S. subsidiary, Futurewei due to the fact that it can no longer maintain trade relations with any other American companies.

In the month of March this year, Huawei sued the U.S. government, claiming that American authorities had “hacked into its company servers to steal emails and sources codes” which is yet to be proved.

In general, the trade tensions between China and the United States is manifesting its negative effects on both parties. Noteworthy, in the year 2018, the Chinese direct investment into the U.S. dropped to $5 billion which is 80% less than the preceding year that saw investments of $29 billion.
At a press conference held in September, Huawei’s founder and CEO, Ren Zhengfei made the following statement:

We can find mathematicians in Russia, scientists from Europe … if we can’t from the U.S.

Moreover, senior Huawei executives had previously declared that they want to recruit “young geniuses” from around the world. They have also boasted the new hires at Huawei with doctorates are offered an annual salary of up to 2 million yuan ($281,000) which is higher than Google or Apple.

While the U.S ban has drastically affected the sales of Huawei’s offerings which includes smartphones and telecommunication equipment, the company posted surprising results earlier today which exhibit 24 percent growth in the first three quarters of 2019 to 611 billion yuan (US$86 billion).

To wrap things up, this is a tricky situation for Huawei but it seems to be handling it well with strong support from the Chinese government. For now, we can only wait and watch what the future holds for the company.

 

(source)