The founder of China’s Huawei issued a “serious warning about the tech company’s future, warning small and emerging companies amid China’s economic woes and a global slowdown,” the Guardian reported on Thursday.
The newspaper cited a leaked internal memo in which Ren Zhengfei told Huawei employees that if it wanted to survive in the next three years, it needed to focus on profits and development, which could indicate further job cuts and divestitures. be
“The next decade will be a very painful period as the global economy continues to deteriorate,” Ren added, referring to the coronavirus epidemic as well as the impact of Russia’s war on Ukraine and the “continued blockade” by the United States on some people. Chinese jobs
“Huawei should reduce any overly optimistic expectations for the future by 2023 or even 2025, and we should make flexibility the most important guiding principle,” he said.
China’s economy is exposed to many problems and pressures due to several factors, including the restrictions imposed to deal with Corona, the crisis in the real estate sector, and the deterioration of international relations. According to this newspaper, the country is not expected to reach its 5.5% economic growth this year.
Chinese tech leader Huawei is managing a significant decline in revenue and profit. Revenue fell 14% in the first three months of 2022, and net profit margin fell to 4.3% from 11.1% last year.
Washington and its Western allies have reportedly restricted Huawei’s business activities in their markets due to national security concerns. According to this newspaper, the company was also banned from buying some foreign technologies.
According to CNN, in late July, an FBI investigation concluded that Chinese-made Huawei equipment could lead to arrests and disrupt communications of the US nuclear arsenal.
The investigation began when the Chinese government proposed in 2017 to spend $100 million to build an ornate Chinese garden at the National Arboretum in Washington, DC.
On paper, the project looked like a bargain, which impressed local officials as they hoped to attract thousands of tourists each year, the network said.
The project involves the construction of a complete complex that includes temples, numerous pavilions, and a “pagoda,” which is a building about 20 meters high where Buddhist rituals are performed.
But when the US intelligence officials began a detailed investigation, they found many dangerous signs, as they indicated that the “Pagoda” was supposed to be located on one of the highest points in Washington.
Multiple sources familiar with the investigation told the network that the building would be built just two miles from the U.S. Capitol, an ideal location for gathering information.
Source: Lebanon Debate
