Huawei CEO Says China’s Cybersecurity Rules Stifle Innovation By Freezing Out U.S. Tech Companies

It’s no secret that U.S. tech companies have been worried by China’s digital security policies, which make it difficult for foreign tech firms to operate in the country. But it’s unusual to see a Chinese company voice any concern. That makes recent comments by Huawei CEO Eric Xu all the more interesting.

“If we’re not open, if we don’t bring in the world’s best technology, we’ll never have true information security,” Xu told Reuters. “The only way you can answer the security problem is to keep improving your technology,” he added.

Huawei CEO Eric Xu voiced concerns about blocking foreign tech from the Chinese tech industry to Reuters.
Huawei at CES 2015.

"If the Chinese market is not open, then the European market won't be open, other markets won't be open, then what's the result? The result is everyone draws a line around their own territory,” Xu added. "Our perspective is recognized by some technical experts in the country. Localization doesn't guarantee security; anyone who understands a little bit about technology understands this."

It’s unusual to hear a Chinese CEO promoting the idea of opening the Chinese market to foreign tech firms. Xu’s reasoning makes sense, though. He compared the situation to primary students competing against college students, noting that a closed tech industry doesn’t have the benefit of access to the technology that the rest of the world is generating. 

Huawei is a major player in China’s tech industry and recently created plenty of buzz with its P8max smartphone. It’s had some trouble penetrating the U.S., thanks to a House Intelligence Committee report back in 2012, but the company is seeking to expand its footprint here in the near future. 

Tags:  China, Huawei