Huawei’s Founder Wants an Invincible Iron Army to Fight U.S.
Huawei’s founder intends to kick off a three- to five-year overhaul of the networking giant, creating an “iron army” that can help it survive an American onslaught while protecting its lead in 5G, according to Bloomberg.
Major structural shifts are around the corner as U.S. sanctions threaten the survival of its cash-cow smartphone business, Ren Zhengfei warned in an internal memo verified by a Huawei spokeswoman. The consumer business faces a “painful long march,” Ren wrote.
China’s biggest technology company is grappling with an existential threat after Washington blocked Huawei from buying American technology, cutting off vital components from Qualcomm chipsets to Google’s Android operating software. Ren, 74, said an internal revamp was now needed to meet war-time needs, meaning organizations deemed unnecessary or redundant will be removed. He didn’t provide details about how such a restructuring might unfold.
“We have to complete an overhaul in harsh and difficult conditions, creating an invincible iron army that can help us achieve victory,” Ren wrote in the letter. “We absolutely have to complete this re-organization within three to five years.”
“Two bullets fired at our consumer business group unfortunately hit the oil tanks,” Ren said in his letter, without elaborating. Still, Ren talked about Huawei’s edge against the U.S. in 5G technologies. Their dominance has been cited as motivation for a U.S. campaign to contain its ascendancy, because the technology is expected to propel future modern economies. “The U.S. doesn’t use the most advanced 5G technology,” he wrote. “That may leave it lagging behind in the AI sector.”