'Survive and earn a little money where we can' 😥
The founder of Huawei has delivered a stark warning for the tech company’s future, sparking alarm with the frankness of his assessment and what it signals for smaller businesses amid China’s economic troubles and a global downturn.
“Huawei must reduce any overly optimistic expectations for the future and until 2023 or even 2025, we must make survival the most important guideline, and not only survive but survive with quality.”from factors including pandemic restrictions, a property industry crisis and plummeting international relations. The country is not expected to reach its economic growth target of 5.5% this year.
over national security concerns. The company has also been barred from buying some foreign technology. Ren’s memo went viral on Chinese social media, shared and discussed by more than 100 million users, with some expressing fear of what it meant for regular people and small businesses if a company the size of Huawei was sending such warnings.“The last person who said such things was Vanke’s Wang Shi and then real estate was in danger,” said one commenter, referring to the chief executive of a state-run property development company.
“In addition, it’s a politically sensitive time right now. We’re just a couple of months away from the 20th party congress. As you know, economic performance is tied up with the party’s legitimacy.” China’s government this week announced a further $146bn in stimulus funding and 19 new measures to address the economic damage wrought by the pandemic and the country’s hardline responses, as well as a crisis in the property development industry.