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June 18, 2019

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Huawei boss predicts drop in revenue but vows no cutbacks

Source: Xinhua | 00:00 UTC+8 June 18, 2019 | Print Edition

ATTACKS from the United States will not stop Huawei from moving forward, founder and CEO Ren Zhengfei said yesterday.

Ren estimated that the company’s revenues could drop to around US$100 billion this year and the next, but he expected a revival in 2021.

Ren made the remarks during a dialogue with US futurist George Gilder and Nicholas Negroponte, co-founder of Massachusetts Institute of Technology’s Media Lab, at Huawei’s headquarters in Shenzhen.

Huawei will invest US$100 billion in the next five years to make network infrastructure more efficient and reliable, Ren said. Despite the financial blows the company is bearing, Ren said there was no plan to reduce research spending and promised to make more contributions to theoretical science in the future.

He said Huawei will neither split nor sell its mainstream businesses, and it has no plans for a mass layoff.

In answering a question about Huawei’s plan to sell its submarine cable business unit, Ren said the company had long wanted to dispose of this business. This was not in response to external attacks, but because it had little relevance to the company’s mainstream businesses.

Huawei will put more employees into the mainstream businesses, said Ren, stressing that it has no plan of a mass layoff in the future.

He also said there are “absolutely no backdoors” in Huawei’s equipment and the company is willing to sign no-backdoor agreements with other countries.

He said issues of network security and information security should be viewed separately.

The network of human society must not be prone to problems as it connects 6.5 billion people and tens of millions of banks and countless enterprises.

Thirty years of applications in 170 countries and regions have proven that Huawei’s network, which serves 3 billion people, is secure, Ren said.

However, information security is another question, Ren said. He described Huawei as a provider of “pipelines” and “faucets,” saying operators and content providers must be responsible for contents “running in the pipelines.”

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