The only way Huawei can escape the US grip

24/01/2021 07:49 GMT + 7

Ren Zhengfei, Huawei’s founder, said that the company needs to operate in a decentralized form, stable profits and ensure 3 to 5 years of salary to overcome the US ban.

According to SCMP, that was shared by the Huawei founder in his speech in June 2020. It was made public by Huawei on January 22, just two days after the inauguration of US President Joe Biden.

In the past 6 months, China’s largest telecommunications group has continued to face many difficulties. They are banned from cooperating with American companies, having to sell the Honor brand while looking for opportunities in areas such as cloud services, smart cars.

My commitment to Huawei brother 1

The Huawei founder shares his vision to overcome the US ban. Photo: Bloomberg.

In his speech, Mr. Nham said that US sanctions were hindering Huawei’s globalization plan, prompting the company to set up production lines by itself.

“There is a big difference between our abilities and our strategy. It is the weak link, and we have to start over as new elementary students,” said Nham.

The Huawei founder also takes the meaning of a famous Chinese maxim: “The best housewife cannot cook without rice”. Huawei is not “good housewives”, he says, nor is it “rice” to cook.

Nham Chinh Phi’s speech shows his own style, combining corporate strategy, military concepts, poetic expressions and philosophical language. The 76-year-old businessman affirmed that Huawei will not give in to the US ban.

“Do not be disappointed by the temporary US pressure or give up our globalization strategy. There will be no future without stepping into the world,” Nham said that Huawei must operate as usual, creating Motivation for employees by not changing the salary regime in the next 3-5 years. He also revealed that hundreds of managers at Huawei have volunteered to resign.

In addition to operating as usual, Huawei also needs to focus on a research and development (R&D) plan:

“We invest 20 billion USD In research activities every year, but the revenue is only 40% … However, we do not complain about being able to ‘bring light’ to everyone like the way leading enterprises in Europe, America, Japan and Russia used to do, “said Huawei founder.

My commitment to Huawei brother 2

“We do not have conditions to forever fight for the number one,” said the founder of Huawei. Photo: The Verge.

“We must shift our focus from revenue to profit,” Nham said, adding that Huawei needs to create reasonable value and profit to ensure steady growth instead of trying to climb to number one. In addition, Huawei’s changing goal lies in decentralized operations, and decision-making power needs to be delegated to local branches and offices.

In the end, Mr. Nham said that the US just wanted to kill Huawei. “At first we thought we did something wrong to reconsider, but then the 2nd and 3rd blow … we realized they (the US) wanted to kill us. The desire to live created a cave. for the company, “he said.

Ren Zhengfei does not normally appear in public, but tensions between Huawei and the US have made him the focus. Sharing with SCMP in 2020, Huawei founder expressed his desire to “drink coffee in the shop without being noticed”.

(According to Zingnews)

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