Huawei founder praises U.S. tech in first word from company since Biden inauguration



© Reuters.

By David Kirton

SHENZHEN, China (Reuters) – The United States remains a “beacon of technology” to be emulated and China’s Huawei Technology should consider cutting products in the wake of U.S. actions against it, the Chinese firm’s founder Ren Zhengfei said in remarks made public on Friday.

Ren’s comments, in a letter to staff dated June of last year, were shared for the first time on a company message board, making them the first public word from the company since Joe Biden took over the presidency from Donald Trump.

Huawei has remained largely silent about its prospects under the Biden administration, after being targeted with several rounds of sanctions under Trump, who said Huawei’s equipment poses a security risk. The company denies the charge.

In a parting shot on Monday, the Commerce Department told semiconductor makers it would deny or revoke licenses for companies including chipmaker Intel Corp (NASDAQ:) to sell products to Huawei, people familiar with the matter told Reuters..

Ren’s letter said that U.S. actions had left Huawei “with a great mismatch between our strategy and our abilities, and that the company will have to revaluate some product lines, and consider cutting some products and staff that are unproductive.

The letter was posted publicly after former Huawei subbrand Honor announced new supply partnerships with major chip companies including Intel and Qualcomm (NASDAQ:) that it had previously lost access to due to the U.S. action against the parent.

Huawei sold Honor to a consortium of the latter’s agents and dealers in November in a bid to help it regain access to chips.

READ  Car industry gloom as Ford plant faces closure and Fiat-Renault merger stalls - business live

Ren’s letter also said that while the company will keep its pay structure unchanged over the next three to five years, hundreds of senior ‘cadres’ had voluntarily taken demotions.

The letter did not mention the Biden administration specifically, though analysts have said the company will need a reprieve from Washington to revive its hobbled phone and 5G infrastructure businesses.

“The United States is still the world’s beacon of technology, and we must learn everything we can from advanced people,” Ren said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here