Canadian telecommunications are still awaiting a final decision from the Trudeau government on Huawei’s place in the national 5G infrastructure, but regardless, the Chinese manufacturer intends to impose itself a bit like Apple, Samsung and Microsoft did before it by opening its own retail businesses.
Had it not been for COVID-19, a first Huawei store might even have already opened its doors in Montreal, suggests in an interview with the To have toSimon Li, president of the consumer division of Huawei Canada. The Quebec metropolis is still considered – alongside Toronto and Vancouver – as one of the first cities in North America that could accommodate such a store once the pandemic is behind us.
“Despite the geopolitical situation, we want to make our brand better known to consumers. We have just opened our first Huawei stores in Vienna and Amsterdam, Europe. We believe this is the best way for the public to see how our products actually work, ”added Mr. Li.
Huawei Canada wants to be seen by consumers as a manufacturer of personal computers and computer peripherals, such as Bluetooth monitors or headphones. The new goal for Huawei in Canada will be to make people forget the controversial outcome of the Meng Wanzhou affair and its feud with the United States over the uncertain security of its 5G equipment.
“Knowing how much the brand in Canada is compromised [en raison de ces deux affaires] in the segment it targets is the great unknown, ”notes Renaud Legoux, full professor in the Marketing Department at HEC Montréal. “Canadian distributors may be reluctant to promote Huawei-branded products. But its strategy of becoming a more upscale brand is a good one. “
Huawei probably wants to have its own environments where people can experience its products in an ideal context, adds the Montreal professor. “Its target clientele, people more comfortable with technology, are probably less concerned with geopolitical issues than the general public. “
See beyond wireless
The US government is not done fighting Chinese manufacturers of mobile products. Security experts recently recommended President Joe Biden to ban the sale of Honor brand products on US soil. Honor became an independent company last year after being established and fully owned by Huawei.
The only problem: some of Honor’s executives have ties to the Chinese government while others are former Huawei executives. In Washington, it continues to be argued that this proximity would constitute a risk to the national security of the United States.
Honor products are not sold in Canada. Huawei, however, continues to market its own wireless there, a model called P40, which is offered to consumers in particular by Videotron, a subsidiary of the Montreal group Quebecor.
Simon Li adds that pending the opening of its own stores in the country, Huawei should soon present its own sections reserved in the shops of some major Canadian retailers. The American chain Best Buy is already doing this for its rivals Samsung and Apple, among others.
“Our goal right now is to expand our product catalog beyond wireless. We have new connected accessories, personal computers and other electronic devices coming in the next year, ”says Simon Li.
Ottawa to decide
Huawei Canada is not saying this openly, but it seems to have thrown in the towel on the side of 5G infrastructure. The OEM continues to maintain that it remains ready to comply with all the safety requirements necessary to operate in Canada. The context in which the country finds itself, however, leaves little room for maneuver for its eventual return to the sector.
First, its competitors Ericsson, Nokia and even Samsung have taken their place in the industry. Wireless providers that have hitherto been close to Huawei – especially Vancouver-based Telus – have found other OEMs to help them build the 5G networks that are already operational across the country. These same equipment manufacturers will want to continue offering their services for future developments in this technology.
Then, even if Canada has still not officially decided whether there is room in its infrastructure for the Chinese supplier, its relations with the other members of the Five Eyes will undoubtedly force it to follow the path indicated by these. In addition to Canada, this strategic alliance also includes the United States, the United Kingdom, Australia and New Zealand. All have decided to ban Huawei from their national wireless infrastructures.
In Ottawa, the subject continues to divide the federal parties. The Bloc Québécois and the Conservative Party make it a national security issue and demand that Huawei equipment be banned from 5G networks. Prime Minister Justin Trudeau remains elusive on the issue, but promises a resolution very soon.
On the Public Security side, we promise that the issue will be resolved soon. “While we cannot comment on specific companies, a review of emerging 5G technology and associated security and economic considerations is underway. This review includes careful consideration of the advice of our allies. Public Safety Canada, the Communications Security Establishment, the Department of National Defense, the Canadian Security Intelligence Service, Global Affairs Canada, and Innovation, Science and Economic Development Canada are working together on this important issue. We will ensure that our networks are secure and will take the appropriate decisions in a timely manner, ”explains Public Safety Canada in response to the To have to.
Make Meng Wanzhou forget
The clearest outcome is therefore for the Chinese company to fall back on its consumer products and hope to create a craze for its own technologies. This includes its Harmony OS operating system, which aims to make people forget the absence on its connected devices of Google services and its Play Store application store, which can be found on all Android devices sold by other major manufacturers. .
In Canada, the challenge is great, recognizes Simon Li. After all, a significant portion of consumers only learned of Huawei’s existence in the first place when its chief financial officer, Meng Wanzhou, was arrested during a layover. in Vancouver three years ago. It was this arrest that practically started hostilities between the United States and China, then between China and Canada. Beijing in turn quickly arrested two Canadians, Michael Spavor and Michael Kovrig, in retaliation.
The case was concluded in late September after an agreement between Washington and Beijing that led to the release of Mr.me Wanzhou and the two Michael. The relationship between the three countries remains very strained. Prime Minister Justin Trudeau has also promised to be tougher on China in the future, without really detailing what he plans to do.
Canadians could also have their say on the issue, including deciding whether or not to be seduced by the new offensive of the Huawei brand in the country.
With Boris Proulx