Who Owns Huawei?
The most informative comment I’ve heard about Chinese business is that one needs to take the western conception of state &#x2F; military &#x2F; corporation and chuck them out the window. In essence these are all descriptive functions of the same entity in China, and any apparent separation is just that—apparent.<p>I know some may reply that, for example, Lockheed effectively lives at this nexus also. It’s a good argument, and probably similar though not exactly the same in arrangement.<p>To me, the most interesting difference is that China has this kind of relationship with its major players regardless of industry, not just their defense contractors. So it doesn’t matter if you make cell phones, video games, toilet seats, ship hulls, or concrete—the whole concept of an enterprise not being interdependent on the state is a non-starter there. Whether it’s happening via backchannels to party officials or through ownership schemes like this one, the concept of private and public sector is so muddy there as to be almost meaningless.<p>To me, this tells us a lot more about IP infringement and espionage than what we usually read, because where the west likes to conceive of corporations as competing in a market in China it’s more useful to describe corporations as tools of statecraft.<p>Huawei wants us to think of them as competing with Apple because they both make cellphones. In reality, it’s as though the CIA or Mossad was competing with Apple—the aims of each may in fact be orthogonal to each other because market performance is not the real driver of the company’s decisions.