Huawei CEO Ren Zhengfei outlines his "battle" strategy against US pressure

Huawei is facing a "life and death crisis" in the face of continued pressure from the US government, said its founder and CEO to its employees, as part of the Chinese telecommunications giant's strategy.

In a note to employees of Huawei's network division, Ren Zhengfei described the current situation of the company as a "battle". Ren is well known for using military language in his communications with employees.

In May, the company was listed on a US blacklist, or "list of entities," which banned US companies from selling to the Chinese company. Huawei relies on many American technologies ranging from software to hardware.

But Monday, the US administration has extended the suspension of the telecommunications company by 90 days. US companies can sell specific products to Huawei during the 90-day period.

"Now that society is going through a life-threatening or life-threatening crisis, our first priority is to encourage all crewmembers to contribute, and the second is to select and promote talent, in order to make a difference. add "new blood" to our system, "said Ren. a CNBC translation of the memo. He added that there would be "new blood" in the company in three to five years.

The boss of Huawei has submitted plans to improve the efficiency of the organization. This included simplifying the reporting structure, reducing surplus staff, eliminating repetitive tasks, and transferring managers to other positions as required.

He also urged staff to ensure that employees are alert to the quality of the contracts they sign with customers to ensure that Huawei is paid on time and that it does not. does not suffer from cash flow problems.

Ren added that Huawei would also accelerate the purchase of important equipment to meet the demand of customers.

The Chinese telecommunications company is increasingly involved in the trade war between the United States and China.

As a result, Huawei tried to free itself from American technology. The company designs its own processors for its smartphones and has recently released an operating system for various devices called Harmony OS. Richard Yu, CEO of Huawei's consumer division, said he would prefer to continue using Google's Android operating system, but that, if he could not, he could switch to HarmonyOS "immediately".

President Donald Trump has sent mixed signals in recent months about Huawei's fate in the United States.

In May, he said that it was "possible that Huawei be included in a trade agreement". But this weekend, Trump said that he did not want to do business with Huawei "because it's a threat to national security."

US Secretary of State Mike Pompeo, however, said the message from the administration was clear.

"President Trump is unambiguous, I do not think there is a mixed message at all," Pompeo told CNBC. "The threat of having Chinese telecommunication systems in US networks or networks around the world presents a huge risk – a risk to national security.Our mission is to find a way to reduce this risk, to reduce as much as possible, we can eventually. "

The United States said Huawei products could allow Chinese authorities to spy on Americans through backdoors, which the Chinese technology company has repeatedly denied.