Huawei taken to court in Zimbabwe

In the last year, regulatory challenges against Chinese companies in Africa have become increasingly commonplace, part of what seems to be a trend of greater African state assertiveness in dictating the terms of business with China as well as a more open competition between Chinese companies. In telecommunications alone, Chinese companies have faced investigations over corruption related to telecom tenders in Kenya, Uganda, Nigeria and Algeria, with both ZTE and Huawei being banned from tenders for two years in Algeria as a result,.

Nonetheless, the fact a $218 million telecom tender awarded Huawei to supply equipment to Zimbabwe’s state-owned telecoms operator NetOne has been challenged in an administrative court with allegations of corruption is significant because it questions the assumption that large Chinese companies do well in undemocratic states politically allied with China by integrating into the patronage networks of the ruling elite.

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