The Chinese telecommunications group is pulling out all the stops during the MWC 2023. Why is Huawei holding out in Europe? There is no lack of self-confidence, as we experienced during our visit.

That Huawei came to the Mobile World Congress in Barcelona with big ambitions (and an even bigger delegation) is immediately apparent when we enter the exhibition space. Huawei alone fills almost an entire hall of the convention building, and the spectacular entrance with fountain should lure everyone to the booth. So we are by no means the only ones who collect a badge on the opening day of the exhibition to be able to visit the hall.

Once through the gates, we are greeted by Alexsander Jacubczak, Senior Marketing Manager for Huawei in Europe. He is excited to show us Huawei’s latest networking equipment. The Chinese company may have evolved into a technological jack-of-all-trades, but the heart and soul of Huawei still lies in the telecommunications and networking industry.

telecom at heart

Jacubczak has a lot to tell us: “Our technology makes sure the connection finds the user, so they never have to look for it again.” From network switches to wireless routers and 5G enhancedEquipment; Huawei is exhibiting a wide range of products to fulfill this promise. So we don’t know in which direction to look first.

Occasionally, Jacubczak can even joke: “Here is a visualization of our core network. Unfortunately I can’t show you that in a ‘sexy’ way.” Nevertheless, the tour leaves us with mixed feelings. Huawei is good at what they do and of course they like to show it off at a mass event like MWC. But how relevant is Huawei’s telecoms story really to the European public?

We turn the time back to May 2019. Then US President Donald Trump announced trade restrictions against Huawei. The decision sent shockwaves through the tech industry. Under pressure from the USA, many European countries then decide to ban Huawei partially or even completely from the 5G network. Just as the network giant wants to bring its 5G equipment to Europe, the doors are irrevocably closed.

These developments may not have made Jacukczak’s job any easier, but that was not felt during our meeting. The head of marketing exudes a healthy dose of self-confidence.

Huawei is still there

This is also the mentality that Huawei wants to show, we learn from Victor Qian, Huawei’s country manager in Belgium. “We want to show at the MWC that we are still here and will stay here. Rather, we want to continue investing in the European market. We strongly believe in face-to-face communication with clients and regulators to earn their trust. That’s why we invite customers from all over the world to talk to us here.”

Didn’t Huawei sense the geopolitical context? Chairman Xi Zhijun recently lifted the “crisis mode.” Qian also partially recognizes this. “Huawei has indeed faced great challenges in recent years. But we can say that our core business has continued to grow and that is an important achievement for me. Telecom is at the heart of the business, but our strategy has expanded to include connectivity in the broadest sense of the word. From smartphones to cars; Connectivity is everywhere today.”

Huawei might find it harder to market its new telecoms devices in Europe these days, but the company is looking for other ways to break into the European telecoms sector. Sustainability is an important topic for the company. To make this clear, the stand is richly decorated with a diverse flora. A bit exaggerated, we think, but only a little showmanship belongs to a trade fair like the MWC.

According to Qian, Huawei is at the forefront of sustainability. “SMEs are currently struggling with high energy prices and consumption. With our technology we want to help them to reduce their consumption. Telecom is a sector that needs to include other industries in the story of sustainability.”

We want to show Europe that we are still here and will stay here.

Victor Qian, Country Manager Huawei Belgium & Luxembourg

Guide in 5G

Huawei has therefore traveled to Barcelona with a clear mission. You are actually drilled into this before entering the company stand. Above the entrance hangs the slogan ‘Guide to an intelligent world”. Huawei wants to be a guide for companies in their digital transformation, explains CTO Paul Scanlan, who joined the table for a discussion with the press.

“When people talk about 5G here, it’s always about speed,” he accepts. “I do not care about that at all; It’s all about operational efficiency. 5G is a much cheaper solution for big data because it uses less energy. But our job is to prove the value of a technology to customers. Because if the user does not want to change, the innovation continues.”

A notable anecdote always helps to get your point across, so Scanlan digs into his memory. “I once attended a demonstration where the speaker asked the audience to play a game against him. He used a 5G connection while the opponent relied on 4G. The speaker won every time. That’s what we want to say here too: With 5G, your company always wins,” Scanlan reveals the point of his story.

Scanlan sometimes acts like a missionary who wants to “enlighten” Europe in dealing with 5G. That sounds a bit cocky, but the CTO has a right to speak out. He himself sees from the front row that in countries where Huawei is still the number one telecom infrastructure provider, the rollout of 5G technology is much more advanced. Think of Asian countries and the Middle East.

“The speed at which 5G is being rolled out also has a lot to do with the mentality of the government,” says Scanlan. “In Europe, there is a habit of always talking about regulating new technologies first. You should think of investing in 5G as building highways. This will cost you a lot of money at first, but will save you a lot more money later on. Europe finally seems to understand that.”

“With 5G, your business always wins.”

Paul Scanlan, CTO of the Huawei Carrier Business Group

rebirth in the cloud

However, Huawei also had to adapt to a new reality. The company also wants to make it clear that it is more than a telecom specialist. Other industries such as data center and storage solutions are also given a prominent place. In particular, cloud services, a relatively new market for the company, are looking to put Huawei in the spotlight.

“With Huawei Cloud, we want to create the first truly global public cloud,” said Qian. He is proud that the company is one of the fastest growing cloud players. “Our cloud business is growing by more than fifty percent. Where the competition sees growth stagnate, we actually go faster.” The hard numbers also show that Huawei currently only has a two percent market share in the global cloud industry, so it can’t really play with the big boys yet .

The definition of a “global public cloud” is also controversial. Microsoft Azure, Google and AWS have a global reach with data centers in every corner of the world; AWS even has data center regions in China itself. It becomes difficult for a new entrant to claim that they will develop the first global public cloud with so many mature global players in the market. So what makes Huawei’s cloud so different?

The increased focus on cloud services is primarily to be interpreted as an outstretched hand towards Europe. Qian makes that clear to us. “Belgian companies use our cloud to open the door to Asian markets. This fits with our strong belief in globalization. An open economy is not only good for companies, but also for countries. Just look at a country like Belgium that has benefited greatly from globalization. Huawei wants to bridge the gap between Europe and Asia.”

In these words we see a subtle mockery of the United States, which is doing everything it can to form a “Western bloc” in the technology sector. But even now, fate does not seem to be favorable for Huawei. According to Asian news outlet Nikkei Asia, Washington is preparing a move to halt the advance in the cloud industry.

By actively reminding Europe each year that it’s still here, Huawei hopes that businesses and regulators will once again accept that outstretched hand.

Grab it

That’s why the Mobile World Congress is an appointment that Huawei should not miss. The company will have to learn to live with this troublesome geopolitical context. By actively reminding Europe every year that it’s still here, Huawei hopes that businesses and regulators will once again accept the outstretched hand. Huawei needs Europe, but Europe needs Huawei at least as much, is the company’s message.

The self-confidence and fighting spirit that Huawei exudes doesn’t seem played to us at all. If the Cycling Fighting Spirit Trophy were also awarded during the fair, we would nominate the company for this award. But time will tell if Huawei also delivers the yellow jersey at the end of the ride.