Huawei founder Ren Zhengfei calls for decentralisation, focus on profits to survive US trade sanctions
- A newly published speech that Ren Zhenfei gave in June reveals the Huawei CEO’s thinking on strategies for surviving US sanctions
- Ren called for delegating decision-making to local offices, simplifying product lines and focusing more on profit
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, 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.”
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”.