Huawei facing “a live-or-die moment” says internal memo

An internal memo to Huawei staff sent by boss Ren Zhengfei warns that the company needs to go into “battle mode” to counter trade barriers put up by the United States. Ren said that although first-half results were healthy, some of this was due to sympathetic early payments by some Chinese firms.

“The company is facing a live-or-die moment… If you cannot do the job, then make way for our tank to roll. And if you want to come on the battlefield, you can tie a rope around the ‘tank’ to pull it along, everyone needs this sort of determination!”

The memo was originally seen by Reuters but Huawei has confirmed that it was genuine.

He called on staff to ensure accounts were paid on time to give the company a stable cash flow. He said they should continue to aim at pre-ban sales targets. Huawei was on track to become the world’s largest handset maker before Trump’s ban of trading with the company.

Ren said that after three to five years, Huawei “will be flowing with new blood… After we survive the most critical moment in history, a new army would be born. To do what? Dominate the world.”

Yesterday the US once more extended the Huawei ban for another 90 days while simultaneously adding another 40-odd Huawei-connected companies to the Entity List. Trump originally claimed the ban was made on national security grounds, but then said that the freeze on trading with Huawei could be relaxed as part of a larger trade agreement between the two countries.

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