Huawei Compliance System Safeguards Partner Ecosystem Development
In the global Information and Communications Technology (ICT) industry, there are regular discussions about concerns related to trade compliance, cyber security, data and privacy protection, environmental protection, and anti-corruption and anti-bribery policies. Industry leaders must address the issues in order to build a healthy business ecosystem. Meanwhile, ICT companies need to address these issues if they want to survive and thrive in the market.
Since its establishment in 2011, Huawei’s enterprise business has grown rapidly worldwide, even in the face of uncertainty. Huawei’s enterprise business, with the support of its global customers and partners, has grown 10-fold in sales performance and achieved a compound annual growth rate of 40 percent since it was established. In this context, Huawei’s operational compliance has become even more important for Huawei Enterprise Business Group (EBG) to sustain its business growth. To address future challenges, Huawei EBG will optimize its operational compliance systems.
Huawei conducts its business with integrity and abides by international conventions as well as all applicable laws and regulations in the countries and regions in which it operates. This is the cornerstone of Huawei’s operational compliance, and it has long been a core principle of Huawei’s management team. With the guidance and oversight of the company’s top executives, the efforts to strengthen a culture of operational compliance are ongoing. Huawei takes the following measures to establish its global operational compliance culture:
Huawei is committed to strengthening compliance in multiple business domains, including trade, cyber security, data and privacy protection, anti-corruption practices, and trade secrets protection. By increasing its compliance investment, Huawei continues to optimize its global operational compliance systems to meet industry standards.
Huawei also regularly collaborates openly and proactively with government agencies, passing governmental audits in Europe and Japan. By strengthening its compliance and increasing its compliance transparency, Huawei continues to earn the respect and recognition of more and more governments and partners around the world.
Huawei was one of the first companies in China to establish a comprehensive trade compliance system. Huawei has been developing its trade compliance system with industry best practices for more than 10 years. The system complies with all applicable laws and regulations of the countries and regions in which it conducts business, including the export controls and sanctions imposed by the United Nations, the US, and the European Union.
A fully connected, intelligent world is built on security and trust. Additionally, cyber security — crucial to building an intelligent world — is a responsibility that is shared by industry competitors, value chain suppliers, and the wider society. Huawei, as an industry leader, has made cyber security and privacy protection its top priorities, and continues to invest in an ongoing basis while also ensuring openness and transparency with its partners and customers. Huawei’s cyber security and privacy protection compliance is best demonstrated by its desire to continuously optimize its software engineering capabilities and practices, and develop resilient networks and high-quality products for its customers. Huawei supports stable network operations and ensures business continuity under all circumstances.
With integrity at the core of the company’s operations, Huawei strictly enforces a zero-tolerance policy for bribery and corruption. Huawei has launched various programs to improve its anti-corruption and anti-bribery management system. Huawei’s employees and its third-party business partners are required to comply with the laws and regulations of the countries and regions in which its conducts business, as well as customers’ anti-corruption and anti-bribery requirements. Moreover, all employees must understand and agree to the company’s Business Conduct Guidelines (BCG). Huawei also shares its anti-bribery requirements with its partners, requiring them to sign an “honesty and integrity” agreement. Huawei has also established complaint channels that employees can use to report possible violations.
Huawei complies with all applicable laws and regulations in the countries and regions in which business is conducted, as well as all relevant international conventions. Following the company’s guiding principles, Huawei continues to improve its anti-corruption and anti-bribery processes and management systems. Huawei has also established anti-corruption and anti-bribery practices in 145 subsidiaries worldwide. Based on these efforts, Huawei continues to improve its anti-corruption and anti-bribery management system in the following ways:
Huawei applies international Intellectual Property Rights (IPR) rules and handles IPR affairs in accordance with international conventions. It proactively addresses IPR issues through various channels, including cross-licensing and business partnerships.
By December 31, 2018, Huawei’s total number of patents granted had reached 87,805, of which 43,371 were granted in China, and 44,434 were granted outside of China. More than 90 percent of these patents are for inventions. In addition, Huawei investment in R&D continuously enriches the company’s IPR portfolio. Indeed, Huawei is one of the world’s largest owners of patents.
Huawei strictly complies with laws and regulations that protect trade secrets, and the company embeds requirements to protect trade secrets into its policies, instructions, and processes. Huawei has proactively built a global system for tracking related legislation, and actively communicates with judicial bodies, associations, law firms, and other consulting firms through workshops and other formats. Huawei, through this collaboration, has built a comprehensive trade secret protection system, and it remains resolute against any practices that infringe on the trade secrets of others.
It is appropriate that Huawei, as an industry leading ICT infrastructure provider, prioritizes in its responsibilities as a corporate entity, and actively collaborates with its customers, employees, and industry partners to create a healthy ecosystem.
Huawei’s global operations are built on compliance management. It remains committed to delivering business integrity and compliance. Following more than a decade of sustained investment and hard work, Huawei has built global compliance systems that meet industry standards. More than 100 of Huawei’s subsidiaries have aligned their own systems with local laws and the requirements of local industry associations, and have drafted legal compliance handbooks. These steps ensure that Huawei remains within the boundaries of the law wherever the company operates.