Huawei's employees said the company plans to enter "combat mode" to survive in the US and prohibition of violations, founder Ren zhengfei said.
Earlier this year, the US Department of Commerce effectively blacklisted the Chinese mobile giant for national security reasons, preventing US companies from doing business with the company.
Huawei's ruling society has access to important components for both the Android operating system as well as Google apps. This is a huge blow to Huawei's bid to gain market share in the West and overtake Samsung as the world's leading smartphone maker.
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Ren Zhengfei
Huawei has steadfastly denied any allegations of wrongdoing, while the US has never produced any evidence to substantiate its claim that the company's network equipment poses a threat to national security.
In a memo to workers, million, Ren said that Huawei will invest in production equipment to ensure business continuity, make certain roles redundant, and give more authority to operational personnel.
“Companies are worth living or dying moment,” the memo reported states. “If you cannot complete the task, then for our tank to roll; and if you want to come to the battlefield, you can tie a rope around the 'tank' to pull it together, everyone needs that kind of determination!”
Ren also urged Huawei to do their best in meeting a previous sales target of about $125 billion, but acknowledged that the latest quarterly results, which saw a 23 percent increase in revenue despite the ban, do not reflect the current situation. He suggested the figures were achieved by sympathetic Chinese customers making payments on time.
Sanctions
Washington has offered some wiggle room by allowing Huawei to procure technology from certain vendors in order to serve us as rural operators using its equipment. The US government has now extended the agreement for another 90 days, but also added more than 40 Huawei divisions to the 'non-face' list.
The discussion is taking place amid significant trade tensions between the US and China, leading some to see US actions against Huawei as politically motivated and its position subject to change if a trade deal is struck.
“Obviously, such a decision taken at the moment is politically motivated and has nothing to do with national security,” a Huawei spokesman said. “Attempts to suppress Huawei's business will not help the US achieve technological leadership. We call on the US government to end this unfair treatment and remove Huawei from the list of entities.
“Today, this decision will not have a significant impact on Huawei's business in any case. We will continue to focus on developing optimal products and providing the best service to our customers around the world.”
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Through Rider