Success Story of Ren Zhengfei, Founder of Huawei

Saturday, May 25th, 2019 - READING
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Watch the success story of Ren Zhengfei, the founder of a telecommunications company from the Bamboo Curtain country, Huawei.

 

Only with small capital, the company can penetrate the international market.

 

Let’s look at the full review in the following article. Happy reading and hopefully inspired!

 

Ren Zhengfei

Ren Zhengfei is the founder and CEO of Huawei Technologies, one of the largest telecommunications and cellular telephone companies in the world.

 

He was born on October 25, 1944, in the small province of Guizhou, mountains, China.

 

Ren Zhengfei is a highly competent and trained graduate engineer. He graduated from the Chongqing Institute of Civil and Architectural Engineering in 1963.

 

The highly accomplished engineer in the academic field followed an unusual path to launch Huawei Technologies in the late 1980s, and in decades became the leader of the third largest telecommunications company in the world.

 

Through the company he founded, Ren Zhengfei became one of the richest people in China, with a total wealth of around US $ 1.7 billion according to Forbes magazine.

 

In the 60s, after he received his engineering degree, Ren Zhengfei began his career as a civil engineer.

 

At that time in China, there was a turmoil in the Cultural Revolution which certainly affected various lines of companies, including the place where Ren Zhengfei worked.

 

He argued that no one wanted to work in the poor and remote areas of Central China, and the Chinese government was forced to send troops to complete the project by recruiting those who agreed to help build a new factory.

 

In 1974 Ren Zhengfei joined the ranks of the People’s Liberation Army (PLA) to work on a synthetic fiber manufacturing project in Liao Yang.

 

Ren Zhengfei discovered his career in the military, which he called “coincidence.”

 

The engineer who had a modest appearance found success and he rose to the rank of deputy director.

 

As a gift, Ren Zhengfei was invited to the National Science Conference in 1978 as a PLA delegate and he attended the 12th National Congress of the Communist Party in 1982.

 

In 1983, the entire technical corps was dissolved by the Chinese government and Ren Zhengfei left the army after an extraordinary promotion.

 

Ren Zhengfei experienced a turning point in his technical career where this situation forced him to turn to the world of entrepreneurship.

 

Because he only had a small pension, he was forced to work in the logistics department of Shenzhen Ren Zhengfei.

 

It was a difficult transition in his life because Ren Zhengfei did not like this new business environment.

 

However, Ren Zhengfei saw other opportunities and in 1987, he decided to set up a business that resold electronic equipment imported into China.

 

With the little money he had, Ren Zhengfei “started small” by creating a Huawei in Shenzhen at a price of several thousand Euros (the company’s capital initially amounted to 21,000 yen, or less than € 3,000).

 

Ren Zhengfei became CEO of the telecommunications business in 1988 and has since served as head of the Huawei company.

 

Ren Zhengfei has succeeded in building his business throughout the world – in Asia, Europe, Latin America, Africa, and the Middle East – but unfortunately, he cannot conquer the United States market.

 

The reason is that the National Security Agency (NSA) has opposed the establishment of business by Chinese leaders who have a past in the military.

 

This is indicated that the presence of companies in the United States can pose a risk of cyber-espionage by the Chinese intelligence agency.

The NSA warned various telecommunications companies operating in the United States, if they partnered with Huawei, they would lose contracts from the American government.

 

Ren Zhengfei always refused this statement, he denied having a connection with the Chinese Intelligence Service.

 

Ren Zhengfei said that he had never received a request from the Chinese government to spy on or carry out cyber espionage.

 

During his life, Ren Zhengfei did not easily get success. Many things happened in his life.

 

Here are some inspirational facts that took place in the life journey of the founder of Huawei:

 

# 1 Coming from a Family Not Able

Now he is known as a rich man.

 

But who would have thought it turned out that the founder of a large telecommunication company in China and this world recognized came from a family that could be said to be less capable.

 

Grandpa Ren Zhengfei works as a chef, while his father moved from Zhenning Village, Guizhou to Guangzhou to seek his fortune by working in one of the state-owned enterprises where Japan was occupying China.

 

Shortly thereafter, the father switched profession to become a person.

 

Economic limitations do not make him desperate. Ren Zhengfei became an outstanding child in academics and he succeeded in continuing his studies at Chongqing University.

 

# 2 Impeccable Military Career

After successfully graduating from his campus, Ren Zhengfei worked in the Military Service in the field of technology development.

 

The genius of Ren Zhengfei made him often sent as a delegate at every national scale conference.

 

But unfortunately, even though he was classified as intelligent with every innovation he gave, Ren Zhengfei’s career was not as smooth as imagined.

 

This is because his father used to work in a business entity that was once controlled by the government of the opposition Kuomintang faction (opposition from the Chinese Communist Party).

 

# 3 Establishing an International Scale Company with a Capital of Rp. 8.2 million

Only with a capital of ¥ 21,000 1987, Ren Zhengfei was able to establish Huawei Technologies.

 

This information is obtained from the Huawei website. At that time the US Dollar exchange rate was around the US $ 5,000.

 

If measured by the current exchange rate, in fact, the money of IDR 8.2 million at that time included a fairly large nominal.

 

At its inception, the Huawei company founded by Ren Zhengfei sold telecommunications equipment.

 

# 4 Ren Zhengfei Doesn’t Have Time with Family

Ren Zhengfei was indeed a hard worker like the Chinese in general.

 

At least for 11 months, he left his family to serve in the military.

 

Along with his success with the Huawei company he founded, he is increasingly busy with various jobs that he must do, especially as a company leader until now.

 

Reported from a magazine, Ren Zhengfei works more than 16 hours a day and this is a possibility that his wife divorced him and his children would prefer to use the clan from the mother “Meng”.

 

# 5 Avoiding the Public

The founder of Huawei turned out to be a person who didn’t like to appear on television screens or on public news. He prefers to avoid the public.

 

That is why he was almost never covered or interviewed by the media crew.

 

But, recently with the emergence of a case involving his daughter who was captured by the United States, Ren Zhengfei appeared in several media to carry out some clarifications related to the case that befell his daughter.

 

 

# 6 Its shares in Huawei are only 1.4 percent

As founder and also the leader of Huawei, it turns out that Ren Zhengfei only has 1.4 percent of Huawei’s shares, despite the company’s successful profits reaching the US $ 92 billion.

 

According to information, the remaining shares were distributed to Huawei employees so that the employees only received half of the normal salary and the other half was converted into shares.

 

According to Ren Zhengfei, with the shares they have, employees will increasingly improve their performance because they will feel they own the company.

 

Princess Arrest Case of Huawei Owner

In December 2018 ago, the shocking news was reported from the Huawei owner’s family.

 

The princess, Meng Hangzhou, who is also the CFO of Huawei, was reportedly arrested in Canada in accordance with the request of the United States government.

 

The incident made its own tension in relations between the United States and China.

 

Not only did it affect relations between the two major countries but the incident had a negative impact on the capital market.

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Success Story of Ren Zhengfei, Founder of Huawei | Andrea Stevontol | 4.5