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Huawei CEO Ren Zhengfei puts out battle strategy against US pressure



Ren Zhengfei, founder and CEO of Huawei Technologies Co., spoke during an interview at the company's headquarters in Shenzhen, China, on Tuesday, January 15, 2019.

Qilai Shen | Bloomberg | Getty Images

Huawei faces a "life or death crisis" amid prolonged pressure from the US government, said the founder and CEO of employees as he devises a strategy to develop the Chinese telecommunications giant.

In a memorandum to employees of Huawei's network department, seen by CNBC, Ren Jenfei described the company's current situation as a "battle." Rehn is well known for using military language in his communications with employees.

In May, the company was blacklisted by the United States ̵

1; or the so-called Companies List – which restricts US companies from selling to a Chinese company. Huawei relies on many US technologies from software to hardware.

But on Monday, the US administration extended the telecommunications company's request by 90 days. The US may sell specific Huawei products during the 90-day period.

"Now that the company is in crisis of life or death, our first priority is to encourage the whole crew to make contributions, and the second is to select and promote talents, to add new blood to our system, "Rehn said, according to a CNBC translation of the note. He said there would be "new blood" in the company in three to five years.

Huawei's boss outlined plans to make the organization more efficient. This includes simplifying the reporting structure, reducing redundancies, allocating recurring jobs, and redeploying other positions as needed.

He also urged staff to ensure that people pay attention to the quality of the contracts they sign with clients. ensures that Huawei is paid on time and does not experience cash flow problems.

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

"Security Threat" for US [19659012] The Chinese telecommunications company is increasingly covered by the US-China trade war.

As a result, Huawei is trying to get rid of American technology. The company creates its own processors for its smartphones and recently launched an operating system for various devices called Harmony OS. Richard Yu, chief executive of Huawei's consumer division, said he would prefer to continue using Google's Android operating system, but if not able to, he could switch to HarmonyOS "immediately."

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

In May, he said it was "possible for Huawei to be involved in a trade deal." But this weekend, Trump said he did not want to do business with Huawei, "because it is a threat to national security."

USA. Secretary of State Mike Pompeo, however, said the announcement from the administration was clear.

"President Trump was unambiguous. I don't think there is a mixed message at all," Pompeo told CNBC. "The threat of having Chinese telecommunication systems in US or worldwide networks poses a huge risk – a national security risk. Our mission is to find a way to reduce this risk, to reduce this risk as much as possible. "

The United States has stated that Huawei's products run the risk of allowing Chinese authorities to spy on Americans through backstage, something the Chinese technology company has repeatedly denied.

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Additional reporting by CNBC's Hilary Pan.


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