According to Hong Kong's South China Morning Post, Meng Wanzhou, the daughter of Huawei founder Ren Zhengfei, said in an internal employee conversation that the company can, in some cases, weigh costs and accept the risk of not complying with legal requirements.In some cases, the risk of non-compliance may be temporarily accepted.
Meng Wanzhou, who holds the position of chief financial officer at Huawei, participated in a question-and-answer session for Huawei's internal employees with her father Ren Zhengfei on October 29. The father and daughter shared their views on compliance.
They all cited the need to control compliance costs and the need to comply with the law, according to memos distributed to employees.
Huawei declined to comment or verify the contents of the memo.
In addition, Meng Wanzhou talked about different types of external regulatory compliance and divided them into red lines and yellow lines.She said the rule mentioned by the former is that there is no bargaining and must be strictly followed.The latter is that strict compliance with the regulations is not technically feasible, and companies can set the cost of violating the rules as sunk costs.
Of course, in addition to the yellow line and red line, there is another possible situation, that is, clear and uncontroversial external rules, but the company is completely unable to abide by them in actual operation.In such circumstances, following a reasonable decision-making process, one might accept the risk of temporary non-compliance.she says.
According to reports, during the talks in October, Ren Zhengfei said that the compliance management of sensitive countries must also take into account the relevant laws of the United States and the European Union, but did not specify the relevant countries.
He also emphasized: We cannot restrain ourselves because the US is attacking us, if our hands and feet are restrained, we will not be able to continue production, so what is compliance for?
Ren Zhengfei said that the compliance policy in the United States is very strict, and American companies are used to it.No one dares to break the law because it has become a habit, but they can still achieve very fast development.Our company has not developed this habit, which is why the cost of communication is too high. Chinese Ministry of Foreign Affairs responds to the arrest of Meng Wanzhou: the United States and Canada should immediately clarify and release them immediately
Huawei CFO Meng Wanzhou was arrested in Canada, and the US has requested his extradition.In this regard, Chinese Foreign Ministry spokesman Geng Shuang said on the 6th that China has stated its solemn position to the United States and Canada, demanding the immediate release of the detained persons.
According to China Central Television, Geng Shuang said at a press conference held by the Ministry of Foreign Affairs on the same day that China has asked the US and Canada to immediately clarify the reasons for the detention, release the detainees immediately, and guarantee the legitimate rights and interests of the parties involved.
Geng Shuang said that after learning of the incident, China has provided consular assistance to the parties as soon as possible.
