Huawei founder stresses ‘survival’ as main goal, warns of global recession
Published: Aug 24, 2022 12:46 AM
Huawei Photo: VCG

Huawei Photo: VCG

Given that the global economy is encountering recession risks and decreasing consumption capacity, Huawei needs to change its business strategy from promoting expansion to seeking profit and liquidity so as to ensure survival in the next three years, domestic news site reported, citing an article written by Ren Zhengfei, founder of China's 5G developer and telecom equipment provider Huawei. 

In the article, Ren talked about taking "survival as the primary principle," while also noting that some marginal businesses will be shut down. The article was reportedly released at Huawei's internal forum on Tuesday. 

Against the backdrop of the US attempting to contain China's high-tech development, Huawei, as a 5G frontrunner, came under the spotlight as Washington repeatedly launched crackdowns that involved cutting the supply of advanced semiconductors as well as threatening other countries to stop cooperation with Huawei.

Though the company has reported setbacks in several sectors, Huawei survived the bullying better than expected. The sales income of the company came to 301.6 billion yuan ($44.13 billion) in the first half of the year. "The consumer business was affected, but Huawei's Information and Communication Technology business achieved stable growth," said Hu Houkun, rotating chairman of Huawei, on August 12.

Since last October, the company has set up 20 business "legions," including a digital financial legion, a machine vision legion and a smart photovoltaic legion. Expanding revenue is the core mission of the legions, said Ding Yun, a senior executive of the company. 

In fact, the US government's moves attempting to clamp down on Chinese technology firms have seen diminishing marginal effects, industrial experts have claimed.

On the contrary, the ill-intended blockage has only pushed Chinese companies to speed up their independent development, experts noted.

Huawei has more than 6,000 chief experts and scientists, as well as over 100,000 engineers.  

Over the past decade, China's investment in science and technology has increased significantly from 1.03 trillion yuan to 2.79 trillion yuan, ranking second in the world, according to the Ministry of Science and Technology.