Huawei: ‘Survival is going to be our priority’ in 2020

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At Huawei, workers are either “tree growers” or “pit diggers” and therefore the “heady scent of plums” comes only after the “bone-deep bite of winter”.So says a poetic New Year’s Day message from the Chinese telecoms giant which sets out its “vision” for 2020.

But beneath the flowery language, Huawei admits life is going to be “difficult” after the Trump administration banned the firm from doing business within the US.

“Survival is going to be our first priority,” it said.

Huawei, which is one of the world’s largest suppliers of 5G equipment, said sales growth for 2019 is going to be less than it initially thought, rising by 18% to yuan 850bn (£92.7bn).

That compares to revenue growth of 19.5% within the previous year. It forecasts that sales will stay struggling in 2020 during which it expects to stay on the US Entity List.

The US has classified Huawei as a national security threat amid claims the corporate has “close ties to the Chinese government and military apparatus”.Huawei said the choice was supported “innuendo, and mistaken assumptions”.In its New Year’s Day statement, the company’s rotating chairman, Eric Xu, said: “The US government’s campaign against Huawei is strategic and long-term.”

The US has also put pressure on other countries to not allow Huawei technology to be utilized in 5G networks, citing concerns over national security, which the Chinese company rejects.In January, the united kingdom is predicted to form a choice on whether to permit Huawei to supply equipment for the rollout of subsequent generation 5G telecoms networks across the country.

Earlier this month, Prime Minister Boris Johnson said: “On Huawei and 5G, I do not want this country to be unnecessarily hostile to investment from overseas.”On the opposite hand, we cannot prejudice our vital national security.”

‘Mediocre managers’
In its New Year’s Day statement, Mr. Xu said: “It’s getting to be a difficult year for us.”But he urged Huawei’s employees to seem beyond adversity: “If not for the bone-deep bite of winter, where would we get the fragrance of plums?”In Huawei’s plans for the year, he warned that managers who don’t perform will face the ax.

“We will remove mediocre managers more quickly,” he said. “Those who prioritize short-term gains and pass problems on to their successors. The pit-diggers among us.”On the opposite hand, he said Huawei will promote people “who help our customers succeed”.

“[Those] who put long-term success before short-term gains by continuously contributing value to the corporate. The tree-growers among us.”Mr. Xu used the message to thank Huawei workers, especially “employees within the front lines who are working day and night to patch up the holes during this embattled aircraft of ours and to their families who have stood by their side”.

While he admitted things within the US presented a serious challenge for the corporate, Mr. Xu said Huawei should use it “to motivate ourselves and build up some muscle”.

And during a final rallying cry, he told Huawei employees to remember: “We are the bamboo stalk that stands tall and proud against the wind from all directions, whether north or south, east or west.”

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