CEO says Huawei won't be pushed around by the U.S. like ZTE was

CEO says Huawei won't be pushed around by the U.S. like ZTE was
Already the number one global provider of networking equipment, Huawei is on track to take over the top spot in smartphone shipments by next year. That lofty goal was vocalized by the CEO of Huawei Technologies Consumer Business Group Yu Chengdong (aka Richard Yu in the West) four years ago. But now that the U.S. is preventing Huawei from easily obtaining U.S. parts and components, has the company's fast track roadmap run into a detour?

According to the Nikkei Asian Review, Huawei founder and CEO Ren Zhengfei said on Saturday that the actions taken by the U.S. could result in slightly lower growth for the company this year. Ren added that Huawei might end up reporting annual revenue growth of less than 20% this year. Addressing a contingent of Japanese media visiting Huawei headquarters in Shenzhen, the executive said, "We have not done anything which violates the law."

Huawei CEO says that the company will not allow the U.S. to dictate the composition of its executive team


Ren added that Huawei is not concerned if the company can't source chips from Qualcomm or other American suppliers. Huawei has its own unit, HiSilicon, which designs the Kirin SoCs used in its high-end phones. TSMC manufacturers these chips along with Huawei's Balong modem chips. Ren pointed out that Huawei has been preparing for the action taken by the U.S. HiSilicon president Teresa He Tingbo added, "We actually have foreseen this day for many years, and we do have a backup plan." Last year, Huawei spent about $11 billion on U.S. parts and components from companies like Qualcomm, Intel and Micron Technologies.

Huawei had a huge hit last year with the Mate 20 Pro

Huawei had a huge hit last year with the Mate 20 Pro


Last year, the U.S. Commerce Department slapped fellow Chinese manufacturer ZTE with an Export ban. The company had failed to comply with punishments placed on it after the company sold goods and services to North Korea and Iran, violating U.S. sanctions. While ZTE was one of the top five smartphone vendors in the U.S. prior to the ban, it was more reliant on U.S. software, hardware and components than Huawei and nearly went under. A subsequent deal with the U.S. required ZTE to pay $1 billion and put $400 million in escrow to cover future violations. It also forced the company to make changes to its board and executive lineup, and be monitored by a U.S. compliance team. During his talk with the Japanese media, Ren made it clear that Huawei would not accept the same stipulations if it were offered a deal. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," the executive said. He also shot down the prospect of manufacturing 5G network equipment in the states.


The U.S. is concerned that the communist Chinese government will order Huawei to spy on consumers and corporations, which is a binding and legal request in the country. In the past, Ren has said that Huawei would defy such an order, but that is no comfort to U.S. lawmakers. The company was already found guilty a few years ago of stealing technology trade secrets from T-Mobile, and a civil court ordered Huawei to pay the U.S. firm nearly $5 million. Huawei will be back in court to face criminal charges over the incident. In addition, the U.S. Justice Department has charged the company, several subsidies and CFO Meng Wanzhou (who happens to be Ren's daughter) with crimes related to Huawei's business dealings with Iran. The country is under international economic sanctions.

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11 Comments

1. vgking9699

Posts: 114; Member since: Mar 01, 2019

They’ve already been found guilty of two crimes, why would we be stupid enough to trust them again Stupid communists

3. Venom

Posts: 3109; Member since: Dec 14, 2017

But Huawei is innocent as they never committed any crimes according to the Huawei apologists. I can already hear Mahrrk right now.

9. d1g1te

Posts: 57; Member since: Oct 04, 2016

How would you like if I'll make up some law in my country and enforce it to US, to you? In my country you will be then plead guilty of crime. If such law is not international it does not make sense. In addition to that usually even when companies of governments sue over something it end up with some financial compensation. Not by banning some company. There is definitively something fishy going on here. To me it more looks like Trump trying to slow down Huawei 5G. Because of that odd timing and so on. These two alleged crimes you are talking about feels to me personally more like distraction.

11. donzac

Posts: 2; Member since: Apr 14, 2019

It must have been a pretty low-level crime if Huawei only had to pay 5 million dollars in restitution. Oracle is suing Google for 9 billion dollars for stealing the code that helped build Android. Google in turn recently sued Uber for stealing its driverless tech and won an out of court settlement of about 250 million dollars. Obviously, Americans aren't too bad at pinching IP themselves when it suits them but Americans prefer the delusion that it is only the Chinese stealing IP

2. D34ever

Posts: 218; Member since: Jul 14, 2018

A lot of tough talk there. Unfortunately, Huawei needs a lot of US components to build their network. And with the ban in place, they are dead in the water.

4. Vancetastic

Posts: 805; Member since: May 17, 2017

I wonder how long it will take Mxy to....oh. Never mind.

6. Donbenie

Posts: 254; Member since: Aug 04, 2013

Go,Huawei! Show the Imperialists what's up... NEVER back down for a Bully!

8. d1g1te

Posts: 57; Member since: Oct 04, 2016

My fingers are crossed for Huawei. This kind of behaviour is not acceptable towards any company. Does not matter if it's US or Chinese. Whole world is affected by this poor act.

10. civicsr2cool

Posts: 254; Member since: Oct 19, 2016

Good Riddance!

* Some comments have been hidden, because they don't meet the discussions rules.

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