“As a private

company, Huawei

gets no advantages.

We can only succeed

if we meet the needs

of our customers and

through our own

efforts.”

Ren Zhengfei Founder

How Huawei Sees The World

fDi Forum – Asia 2015 James Lockett Vice-President, Head of Trade Facilitation and Market Access , Huawei Technologies

Hong Kong, 30 June 2015

Becoming a Global Company Headquartered in China.

0

5

10

15

25

20

1987

1987-1992 Starting-up

1992-2000 Chinese Market

USD bn

30

35

Year

2000-present

International Market

1992-1997

China Rural Market

1997-2000

China Urban Market

2000-2004

Global Emerging

Market

1992 1997 2000 2005 2010 2014

45

Revenue from China

Revenue from outside China

Private Business versus State-Owned Enterprises

• SOEs in China represent 25%-30% of China’s GDP; 20% of output.

• Returns on assets among SOEs is 3.7%, less than half the cost of capital.

• Private businesses in China are twice as capable as SOEs in repaying bank debt.

• Private firms in China received 52% of all enterprise lending between 2010-2012.

• But represented 66%-75% of China’s GDP.

Nicolas Lardy, Petersen Institute

Markets over Mao © 2014

• The WTO and China have a mutually dependent and beneficial relationship.

• A net benefit for Chinese exporters. • Helped open China’s domestic market to

international business. • Chinese companies need more direct involvement.

The World Trade Organisation and China

What Chinese companies going global can learn from Huawei.

• It’s a long term commitment. • It’s a long term investment. • Global + Local. • Brand is critical in consumer markets. • Proactive communication is key. • Cost is not a proxy for quality. • Economies of scale count.

Risks and Opportunities in Global ICT supply

Opportunities • Global Supply Chain • Pace of technical change • The ecosystem • Scale • Trade agreements • Import tariffs • Global standards • Innovation and value

Risks • Global Supply Chain • Pace of technical change • The ecosystem • Scale • Trade agreements • Import tariffs • Global standards • Commodization

Don’t fear risk; be afraid of opportunities lost.

Huawei: Maximising the Benefits; Minimising Risk

Innovate

• Create the environment.

• Disrupt yourself. • Dream different. • Build foundations. • Don’t do everything. • Protect and respect

IPR.

Invest

• Think long term; act short term.

• Invest only to create value.

• Partners where needed.

• Share the rewards. • Recognise wrong.

Customer

• The customer decides.

• Invest to create value.

• Create what the custom needs; don’t just sell what you have.

Generating Cross-Border Growth

Glocalisation

• ICT is a glocal marketplace.

• Production scale with local insight.

• A global workforce. • Cultural

assimilation.

Global investment

• Invest close to customers.

• Develop for global market.

• Refine for local implementation.

• Respect local laws and regulations.

Standards

• Strive for global standards.

• Embrace Open Innovation.

• Lead global development.

Climbing the FDI Value Chain.

What Huawei looks for when making overseas investments: • Existing skills; strong education record. • Proximity of established research institutions. • Respect for intellectual property. • Customers. • Place in Global Value Chain. • Competiveness in: cost, legal certainty, governance.

Thank you

Speaker:

James Lockett BA, J.D., LL.M. Vice President Trade Facilitation and Market Access Huawei Technologies Co. Ltd. Shenzhen, P.R. China Tel: +86.755.2835.6801 Mobile: +86.186.8872.4230 Twitter: @jameslockett1 E-Mail: jameskennethlockett@huawei.com

The views expressed in this presentation are personal to the speaker, and do not reflect the views of Huawei Technologies Co., Ltd ., or any other entity.