They were trapped as soon as they incorporated in China.
Of course, the founding members all had CCP ties, they got massive funding from the government, and their first round of products were all based on trade secrets stolen from Nortel.
But that was decades ago, and people tend to forget that the company was built on top of the CCP stealing Nortel’s secrets and then underbidding them internationally, putting the Canadian company out of business. Nortel had to cover R&D costs, while Huawei just stole the results of Nortel’s R&D and then had CCP subsidies for the production.
while Huawei just stole the results of Nortel’s R&D and then had CCP subsidies for the production.
China requires that all companies entering their market share their technology with Chinese firms, any company planning to enter the Chinese market know that.
In other words, Nortel (and others companies who set shop in China) willingly shared their tech with China in exchange for being allowed to operate in the country, so saying China stole the technology is extremely dishonest.
Can you explain? I'm not really good at catching the subtleties of language through text.
IMO the commenter is not at all close to getting it because the Canadian firm would have patented their innovation and produced it in a country that has the kind of IP laws they expect, so their innovation would have reaped a great reward instead of getting copied and put them out of business.
Em adespotom here is implying that the company had to go to China to complete with other Canadian companies in the same business and that China is somehow to blame for this.
But the thing is, if the conditions of the CANADIAN market force Canadian companies to go to China to be competitive, then it’s not really China’s fault now is it?!
Thanks now I see your point. It always surprises me when people are like "let me use your slave labour and lack of environmental regulations" and then they're surprised China has no allegiance to Western IP laws, which are of zero benefit to them.
Just drop the china bad brainrot and you'll be onto something.
The peoples who say that there is slave labor in china, let alone that it is commonly used by corporations there have never provided evidences of such a thing as far as I am aware. If you think there is slave labor in china you need to prove that.
As for the lack of environnemental regulations, I don't know chinese law enouth to deny it with full confidence but given the tremendous governmental effort in green tech that has made them wold leader in renewable, electric cars and more I find that unlikely to be the case.
The explaination is more simply that chinese labor is way cheaper than western labor while at the same time way more industialized than other places with cheap labor like india and has also fully or almost fully integrated supply chains that make production as a whole cheaper.
As for IP law, again I don't know enought of chinese law to say exactly how it works but they have indeed no reason to follow western IP laws.
What are you even going on about there. Workers in China have seen incredible gains the like of which aren't seen anywhere else in the world. Slave labor indeed...
The real (inflation-adjusted) incomes of the poorest half of the Chinese population increased by more than four hundred percent from 1978 to 2015, while real incomes of the poorest half of the US population actually declined during the same time period. https://www.nber.org/system/files/working_papers/w23119/w23119.pdf
By the end of 2020, extreme poverty, defined as living on under a threshold of around $2 per day, had been eliminated in China. According to the World Bank, the Chinese government had spent $700 billion on poverty alleviation since 2014. https://www.nytimes.com/2020/12/31/world/asia/china-poverty-xi-jinping.html
Nortel wasn't killed by Huawei stealing their IP, which certainly did happen. They tanked themselves with some terrible accounting that hid the terrible situation they put themselves in. Nortel and Enron are the reason GAAP is the gold standard and legally required to be reported these days.