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Huawei: Ren Zhengfei’s alarm, ‘survival is imperative’

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Ansa Live at 8 (ANSA)

(ANSA) – ROME, AUGUST 26 – The call to “survival” and the “painful” next decade of Huawei, started by the founder Ren Zhengfei, has caused alarm in China: its internal note, leaked in the official media and gone viral on social, it seemed a warning about the future of the company and the country for the honesty of judgment. Ren told Huawei staff that “the cold will be felt by everyone” and that the company must focus on profit versus cash flow and expansion if it is to survive the next three years, pointing to more job cuts and divestments. “The next decade will be a very painful historical period, as the global economy continues to decline,” he noted, citing the pandemic, the impact of the war in Ukraine and the “continuous blockade” by states among the main causes. United on some Chinese assets. “Huawei must reduce any excessively optimistic expectations for the future and until 2023 or even 2025 we must make survival the most important guideline, and not only survive, but also with quality”, added the founder of the Shenzhen giant, using tones opposite to those full of optimism also used during the squeeze initiated by the administration of former US president Donald Trump. The economy is under severe pressure amidst anti-Covid restrictions, the real estate crisis, international tensions and the very hot summer that is creating electricity rationing in important parts of China. Huawei, one of the largest companies in the Dragon, is working to manage the collapse in revenues and margins on profits that fell in the first three months of 2022, respectively, by 14% and 4.3%, from 11.1% of the 12 months earlier, serving the boycott of the US and allies who limited their markets for national security to the group. “In the past, we have embraced the ideal of globalization and aspired to serve all of humanity, so what is our ideal now? To survive and earn some money where we can. From this point of view, we have to adjust the structure of the market and study what can be done and what should be abandoned “, Ren noted. The memo went viral on Chinese social media, shared and discussed by over 100 million users, with many comments on the future of the economy. (HANDLE).

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Source: Ansa

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