Ren Zhengfei, the Huawei Founder and CEO, has called for the company to decentralize its operations and focus more on generating and maintaining profits to survive the impacts of the US sanctions.
According to an SCMP report, the senior Huawei executive also called for the company to simplify its product lines, and maintain pay levels for the next three to five years to survive the US trade restrictions. The CEO and founder made the announcement in a published speech that was made public earlier this month. Ren had made the speech back in June 2020. For those unaware, the US sanctions have severely impacted the operations of the Chinese tech giant and had even led it to sell off its budget smartphone manufacturing unit, Honor.
Now, the company is doubling its efforts to expand its business in other areas, after its smartphone operations having been nearly crippled. At the moment, Huawei is working on growing its presence in areas like cloud computing/services and even smart cars. Ren stated that “There’s a big mismatch between our ability and strategy. It’s our weak link, and we are forced to start from the beginning like elementary school students.” He even referred to the Chinese proverb of “the cleverest housewife cannot cook a meal without rice”, adding that the company has neither “a clever wife” nor has its “own rice”.
The official also added that “Please don’t be upset because of the temporary US pressure, or give up on our globalization strategy. There’s no future without embracing globalization [in development and research].” Ren believes that Huawei must operate as normal and must also find ways to motivate people. He said that “hundreds of Huawei cadres” had even offered to go through a demotion, to showcase the dedication of the team.
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