London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Huawei faces a 'life or death crisis,' CEO says as he lays out 'battle' strategy amid US pressure

Huawei faces a 'life or death crisis,' CEO says as he lays out 'battle' strategy amid US pressure

Huawei CEO Ren Zhengfei laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing repetitive jobs and moving managers to other positions where required.

Huawei is facing a “life or death crisis” amid continued pressure from the U.S. government, its founder and CEO told employees, as he laid out a strategy for the Chinese telecommunications giant going forward.

In a memo to employees of Huawei’s networking division seen by CNBC, Ren Zhengfei described the company’s current situation as a “battle.” Ren is well-known for using military language in his communications with employees.

In May, the company was put on a U.S. blacklist — or the so-called Entity List — which restricts American businesses from selling to the Chinese firm. Huawei relies on a lot of American technology from software to hardware.

But on Monday, the U.S. administration extended a reprieve for the telecommunications company for 90 days. U.S. businesses can sell specific products to Huawei during the 90-day period.

“Now that the company is at a life or death crisis, our first priority is to encourage all crew to make contributions, and the second is to choose and promote talents, to add ‘new blood’ to our system,” Ren said, according to a CNBC translation of the memo. He said there will be “new blood” in the company in three to five years.

The Huawei boss laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing repetitive jobs and moving managers to other positions as required.

He also urged staff to make sure people pay attention to the quality of the contracts they are signing with customers to ensure Huawei is paid on time and does not suffer any cash flow issues.

Ren added that Huawei would also accelerate the purchase of important equipment in order to meet customers’ demand.


‘Security threat’ to the US

The Chinese telecommunications firm has been increasingly caught up in the trade war between the U.S. and China.

As a result, Huawei has been trying to wean itself off reliance on American technology. The company designs its own processors for its smartphones and recently released an operating system for various devices called Harmony OS. Richard Yu, CEO of Huawei’s consumer division said that it would prefer to continue to using Google’s Android operating system, but if it was not able to, it could switch to HarmonyOS “immediately.”

President Donald Trump has sent mixed signals over the last few months about the fate of Huawei in the U.S.

In May, he said that it was “possible that Huawei would be included in a trade deal.” But this weekend, Trump said he didn’t want to do business with Huawei “because it is a national security threat.”

U.S. Secretary of State Mike Pompeo, however, said the message from the administration is clear.

“President Trump has been unambiguous. I don’t think there’s a mixed message at all,” Pompeo told CNBC. “The threat of having Chinese telecom systems inside of American networks or inside of networks around the world presents an enormous risk — a national security risk. Our mission set is to find a way to reduce that risk, to take that risk down as much as we possibly can.”

The U.S. has said that Huawei products carry a risk of allowing Chinese authorities to spy on Americans via backdoors, something the Chinese tech company has repeatedly denied.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×