Huawei CEO Acknowledges 'Life Or Death Crisis' For Company Amid Trade Spat

Chinese telecom giant Huawei is engaged in a "battle" with the U.S. government and faces a "life or death crisis," the company said in a memo to employees.

What Happened

Huawei founder and CEO Ren Zhengfei — known for using military jargon in communicating with employees — pleaded to employees to battle harder on the front lines.

The CEO said in a memo obtained by CNBC that Huawei's top priority is for all workers to "make contributions" to the company.

The second priority is to focus on promoting talent and adding "new blood," Ren said. 

Huawei was named as a national security threat by President Donald Trump months ago and banned from conducting certain business activities with American companies. It remains unclear if the Chinese company will be cleared to resume all prior relationships.

Why It's Important

As a counter to the Trump's administration's moves against Huawei, Ren told employees it is important to seek greater efficiencies, according to CNBC.

Huawei needs to axe repetitive jobs, simplify reporting structures and make sure clients pay their bills on time to avoid cash flow problems, the CEO said. 

Ren also said the company will accelerate the purchase of important equipment to keep up with customer demand.

What's Next

Trump said in May it is "possible" Huawei could be part of a broader trade deal with China.

Yet over the weekend, he said he has no interest in doing business with Huawei "because it is a national security threat."

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Public domain photo via Wikimedia

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