China's largest telecommunications equipment company, Huawei, has effectively ceased its lobbying activities in the U.S. market. The $13 million (approximately 17.1 billion KRW) spent on lobbying over the past decade has essentially gone to waste.
On the 10th (local time), Bloomberg reported that the last two lobbyists employed by Huawei in the U.S., Jeff Hogue and Donald Morissey, have left the company. Morissey resigned in December last year and is currently working as the senior director of government affairs at battery technology company Gogson, while Hogue did not respond to Bloomberg's request for confirmation.
Additionally, Futurewei, Huawei's U.S.-based research institute, ended contracts with external lobbying firms such as Imperium Global Advisors and Gromnyong Group in November last year.
Bloomberg explained, "The resignation of the lobbyists is due to employees leaving Huawei's U.S. operations," adding, "This quietly marks the end of Huawei's 'costly' efforts to maintain its presence in the North American market that lasted for years." It also noted, "At its peak, Huawei employed nine lobbying firms and some public relations personnel," and "The management was known to regularly arrange briefings for congressional offices and major media outlets."
Bloomberg cited federal government data, stating that Huawei spent more than $13 million on lobbying activities over the past decade. Before and after the U.S. placed Huawei on a blacklist in May 2019 citing national security concerns, Huawei attempted to improve the situation through comprehensive lobbying efforts. Huawei's lobbying expenses, which were around $1.8 million in the first quarter of 2019, surged to $3.6 million in 2021. According to disclosures to the U.S. Senate, Democratic lobbyist Tony Podesta reportedly received $1 million from Huawei that year, Bloomberg reported. The contract between Podesta and Huawei is known to have ended in late December 2022.
Bloomberg explained that, as lobbying efforts failed to produce significant results and Huawei's position in the U.S. market shrank, there was no reason to continue spending more funds. Chris Pereira, founder of consulting firm iMPACT, said, "The U.S. market is not a place where Huawei can find a breakthrough in the near future."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
