Letters | Why Huawei should not take US allegations lying down

Richard Harris questions Huawei’s public relations strategy in response to US allegations against the company, suggesting that it should have opted to remain low profile and list its shares in the US to bring about transparency and regulatory oversight (“Why Huawei should lie low and plan a US listing instead of going on the offensive”, March 1). With due respect for Mr Harris’ opinion, which I quite enjoy reading every time, I would like to address some issues in his argument.

First, it is not fair to compare Huawei’s situation with Volkswagen’s recent falsifying emissions scandal, in which the carmaker outright admitted to wrongdoing. In the case of Huawei, no proof has been offered to support the statement that it has close ties to the Chinese government, other than that its founder served in the military.

In that regard, it is worth noting there are 2 million active personnel in the People’s Liberation Army, the biggest in the world, which means the number of people at some point associated with the army is quite significant.

Second, the idea that only a listing in the US can offer a desirable level of scrutiny greatly undervalues the Hong Kong stock exchange, which only recently approved new listing rules in an effort to remain competitive, as other bourses, including those in the US, had already adopted similar provisions a long time ago.

Finally, in relation to the arrest of Huawei’s chief financial officer, even US President Donald Trump implicitly admitted that it is a political matter when suggesting that her situation could be addressed in the trade deal with China.