Chinese President Xi Jinping wants the Huawei ban lifted as part of the trade truce. But Huawei Chief Security Officer Andy Purdy, a former top cybersecurity official for the U.S. government, said a trade deal would not impact Huawei’s ability to do business in the U.S.
“People don’t understand the way the United States government works if they think any agreement between the U.S. is going to eliminate all restrictions on Huawei’s ability to do business in the United States. We will not be allowed to do business unless they are strict, government monitored risk mitigation processes. A trade deal is not going to affect that,” said Purdy to FOX Business’ Maria Bartiromo on Thursday.
Purdy also maintained that there’s no direct link between the Chinese government and the telecom giant and welcomed the U.S. to investigate the company.
“Secondly, we do not want and we do not speak for the Chinese government and they don’t speak for us,” he said. “We still welcome the opportunity to talk directly with us government to work out these proven risk mitigation measures.”
By law, companies in China are required to establish a party organization. However when Bartiromo pointed out that the founder and chairman of the company is “actually a member of the Communist Party,” Purdy said, “well, there are 88 million members of the Communist Party and it’s a communist country.”
Purdy also denied that the company is 99 percent owned by an entity called the “trade union committee” which is allegedly run by the Chinese government.
“It’s an employee owned company. There are 90 thousand or so that own shares in the company,” said Purdy.
“Well that is actually not true,” retorted Bartiromo. “One percent is owned by your chairman Mr. Ren and 99 percent is owned by the union and the union is overseen by the Chinese government.”
“Well the union isn’t overseen by the Chinese government,” Purdy responded.
“But this is a state union,” said Bartiromo
“And the fact is we have ownership shares and we get to vote,” said Purdy.
Last week, Mr. Ren projected up to a $30 billion reduction in projected increased profits as a result of the ban.
Purdy said although the company would take a “hit over time,” the company would be able to tackle it.
“The impact in terms of our suppliers is not going to be fully felt until August 19, until the impact is in place because they’re still allowed to buy from us,” he said. “But if we’re not allowed to buy from American suppliers in the long term, and we hope to, because we welcome those partnerships, it will have an impact on us, but we’re going to be able to deal with it.”