Opinion | Time is ripe for Huawei to launch an IPO, to address political and security concerns once and for all
- The tech firm has said it neither needs funds nor wants a distraction but a clearer ownership structure and a chance for the public to have a stake is the best way forward
We are in no position to judge the veracity of the allegations. What we do know is that the situation is not only untenable for Huawei, but also bad for the US-China economic relationship.
Huawei may be hampered in the short term but it is unlikely to go out of business. It claims it has long prepared for this scenario and the Chinese government may offer support during this period of disruption.
Meanwhile, Huawei continues to struggle to lift the cloud of suspicion. Even if it modifies its commercial behaviour, it cannot address the background political and security concerns that make it such a target for the US.
The futility of this situation will cause anger and frustration in China, giving credence to those who claim the US is trying to contain China's technological rise. It may even push Huawei towards even less transparency, weaker compliance with international standards and practices, and closer links with the Chinese government.
It is high time Huawei reversed this unfortunate course of events by reforming its ownership structure and publicly listing its shares. Huawei states that it has no investment from state entities and is employee-owned, controlled via the Huawei Investment & Holding Company Trade Union, whose operating guidelines are opaque. This unusual holding structure, combined with the historical reluctance of Huawei founder Ren Zhengfei to engage with the public, has only added to suspicions.