Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Huawei founder sees decentralised control as a way to beat US sanctions

Huawei founder sees decentralised control as a way to beat US sanctions

A newly published speech that Ren Zhenfei gave in June reveals the Huawei CEO’s thinking on strategies for surviving US sanctions.

Huawei Technologies Co. must decentralise its operations, simplify product lines, focus on generating profit, and maintain pay levels for three to five years to survive US trade restrictions, according to a recently published speech from company founder and CEO Ren Zhengfei.

Ren made the speech last June, but Huawei only made it public on Friday, two days after the inauguration of US President Joe Biden. The Shenzhen-based telecoms equipment giant has faced many obstacles in the past six months: the company was banned from accessing products related to US technologies
and services, it sold its budget smartphone brand Honor, and it doubled its efforts in new business areas such as cloud services and smart cars.

Ren, 76, said in the speech that US restrictions have made it hard for Huawei to implement its original globalisation plans and that the company was forced to make its own production lines.

“There’s a big mismatch between our ability and strategy,” Ren said. “It’s our weak link, and we are forced to start from the beginning like elementary school students.”


Ren said US restrictions have made it hard for Huawei to implement its original globalisation plans and that the company was forced to make its own production lines.


Referring to the Chinese proverb that “the cleverest housewife cannot cook a meal without rice”, Ren said Huawei is neither “a clever wife” nor does it “own rice”.

Ren’s speech was given in his typical style, combining corporate strategies, military terms, poetic expressions and philosophical language. The Chinese entrepreneur, whose business empire is at the centre of the storm engulfing the US-China technology rivalry, said Huawei will not be defeated or become resentful of the US.

“Please don’t be upset because of the temporary US pressure, or give up on our globalisation strategy,” Ren said. “There’s no future without embracing globalisation [in development and research].”

Huawei, according to Ren, must operate as normal and find ways to motivate people “under the principle that the compensation structure will not change in the next three to five years”.

Ren disclosed that “hundreds of Huawei cadres” have volunteered to be demoted. “It showed that our team is very good,” he said.

Huawei must also stay committed to research and development, the CEO said.

“We invest US$20 billion into research and development every year, but income is only 40 per cent of the input as 60 per cent [of investment] is burnt like candles in the dark,” Ren said. “But we are not complaining. We can bring light to others just like leading European, American, Japanese and Russian businesses did.”

Ren called on the company to remain focused, with an eye on profits.

“We must gradually shift focus from the top line to the bottom line. All product lines … must not blindly pursue becoming No 1 … we don’t have the conditions to always fight to be No 1,” Ren said. “We must create value and reasonable profits to ensure healthy growth.”

The CEO also called for the company to delegate more authority to local branches and offices. “Battlefield commands shall be made by those who can hear the sound of gunfire,” said Ren, who previously worked for the People’s Liberation Army. “Even without a central command centre, the company can still fight in a flexible way, and that’s the goal of our reform.”

Huawei has realised that the US wants nothing from the company but its death, Ren said.

“At the beginning, we thought we might have done something wrong in compliance and we carried out self examination; but then the second blow and third blow followed. Then we realised that they want our death … but the desire to survive has also motivated us”.

Ren had long sought to keep a low profile, but increased tensions with the US over the last couple years pushed him into the spotlight. In an interview with the South China Morning Post in early 2020, Ren said that he was not the spiritual leader of Huawei and that his “biggest wish is to drink coffee in a cafe unnoticed”.

Comments

Oh ya 5 year ago
I use one of there phones and love it. My last phone was a Samsung and it was good but the Huawei is way better

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×