Huawei – a rough path in global expansion - dependence on China rises to 70%

Recently Nihon Keizai Shimbun Electronic Edition reported the following:

ファーウェイ、難路の世界展開　中国依存度は7割に上昇

2021年8月12日 2:04 [有料会員限定]

西アフリカのセネガルで6月、約7000万ユーロ（約90億円）を投じた大型データセンターが稼働した。「今後は各州のデータを全てここに集約する」。地元メディアによると、サル大統領は稼働式典でこう語った。この施設は中国政府からの融資を受けて建設され、通信インフラを中国通信機器最大手、華為技術（ファーウェイ）が担う。

米政府はファーウェイの通信機器について、安全保障上の懸念があるとの理由から高速通信規格「5G」の通信網などから排除するよう各国に呼びかけている。それでもアフリカ、中東など新興国はなおファーウェイの牙城だ。スウェーデンのエリクソンやフィンランドのノキアなど欧州企業と比べて2～3割は安いとされる低価格などを武器に受注を広げてきた。

足元では5Gなどの通信機器だけでなく、関連するシステムもセットで売り込む手法が目立つ。注力分野の一つがスマートシティーだ。2020年末時点で、40カ国の700以上の都市で関連事業を手掛けるという。

中東のドバイでは5Gインフラの構築に参画しつつ、監視カメラや気温などを測るセンサーを組み合わせた「スマート街灯」を提供。ケニアでは4Gの基地局と監視カメラを組み合わせたシステムを納入し、犯罪発生率の低下につなげた。監視カメラは個人情報を政府に握られる懸念はあるが、犯罪抑止につながるとして需要が大きい。

ファーウェイの攻勢の背景には中国の巨大経済圏構想「一帯一路」もちらつく。ファーウェイは中国政府とは関係なく事業を展開しているとするが、一帯一路の沿線に含まれるアフリカや中東などで進むスマートシティーなどのプロジェクトは、中国政府系の融資が供与され、ファーウェイも参画するケースが多い。

ただ、アフリカなど新興国では対中債務が膨らんでおり、一部で返済に行き詰まるケースも出ている。米欧などは「債務のワナ」と呼んで批判しており、中国への警戒が強まればファーウェイの受注活動にも響く可能性がある。

先進国では米国の圧力の影響がじわりと出ている。5Gでは日本やオーストラリア、英国がすでにファーウェイ製品の排除を決めた。フランスやドイツは明言はしていないものの、参入を事実上厳しくする。20年までは好調だった通信機器の販売も、足元ではシェアを少しずつライバルに侵食されている。

こうした影響はファーウェイの経営指標にも表れつつある。10年代前半には売上高の国外比率が7割に迫ったが、徐々に低下。20年12月期は34%まで下がる一方、中国依存度は約7割まで高まった。19年以降の米政府による規制の影響に加え、スマートフォンや成長が続く5Gで中国市場への依存が加速している面がある。

台湾の証券会社、群益国際控股の李天凡研究員は「中国の売上高比率は今後も上がるだろう。国外事業は米中関係や国際情勢の影響を受けざるを得ない」と指摘する。

ただ、ファーウェイの成長を支えたのは1997年以降の積極的な国外展開だった。創業から30年超で世界の170を超える国・地域で20万人近くの従業員を抱えるまで巨大化したファーウェイ。成長力の源泉だったグローバル化の勢いを再び取り戻せるかが今後の課題の一つとなる。

Translation

In June, a large data center with an investment of about 70 million euros (about 9 billion yen) went into operation in Senegal, West Africa. "From now on, all the data of each state will be collected here." According to local media, President Sal said this at the ceremony. The facility will be constructed with a loan from the Chinese government, and the communication infrastructure would be handled by Huawei, the largest telecommunications equipment company in China.

The US government was calling on countries to exclude Huawei's communication equipment from the high-speed communication standard "5G" communication network because of security concerns. Still, emerging countries such as Africa and the Middle East were still Huawei's strongholds. It increased orders with low price as a weapon, which was said to be 20 to 30% cheaper than European companies such as Ericsson in Sweden and Nokia in Finland.

At present, not only communication devices such as 5G, but also related systems were sold as a set. One of the areas of focus was smart cities. As of the end of 2020, it will be involved in related businesses in more than 700 cities in 40 countries.

In Dubai in the Middle East, while participating in the construction of 5G infrastructure, it provided "Smart Street lights" that combined surveillance cameras and temperature measuring sensors. In Kenya, it delivered a system that combined a 4G base station and a surveillance camera, which led to a reduction in crime rate. Although there was a concern that personal information could be gotten hold by the government, surveillance cameras were in great demand because they could deter crime.

In the background of Huawei's offensive was China's flickering giant economic zone concept "One Belt, One Road". Huawei was said to be developing business independently of the Chinese government, but projects such as Smart City, which were included along the Belt and Road Initiative in Africa and the Middle East, were financed by the Chinese government, and Huawei also participated in many cases.

However, in emerging countries such as Africa, debt to China was swelling, and in some cases, repayment was stalled. The United States and Europe had criticized it as a "debt trap," and if vigilant towards China became strong, it could affect Huawei's business ordering activities.

In developed countries, the effects of US pressure were beginning to emerge. About 5G, Japan, Australia and the UK had already decided to eliminate Huawei products. France and Germany hadn't made a statement, but they would effectively tighten entry. Its sales of telecommunications equipment, which had been strong until 2020, were now gradually being eroded by rivals.

These effects were also appearing in Huawei's management indicators. In the first half of the 2010s, the overseas ratio of sales approached 70%, but it gradually declined. While it fell to 34% in FY ending Dec. 2020, it's dependence on China increased to about 70%. With the addition effects of regulations by the US government since 2019, and the continuing growth in smartphones and 5G, Huawei’s dependence on the China market was accelerating.

Li Tianfan, a researcher at Capital Securities Corporation said, "China's sales ratio will continue to rise. Foreign businesses will unavoidably be affected by US-China relations and international situations".

However, it was the aggressive overseas expansion since 1997 that supported Huawei's growth. More than 30 years after its founding, Huawei had grown to have nearly 200,000 employees in more than 170 countries and regions around the world. One of the future issues would be to regain the momentum of globalization, which was the source of growth potential.

              So, Huawei is doing 5G network building in Africa. It is not an ordinary business company. In the background, Huawei’s overseas operations support China’s giant economic zone concept "One Belt, One Road". No wonder when a top official of Huawei has been arrested in Canada, China uses all the means to seek her release.