- In a staff email, the founder of China's Huawei Technologies Co Ltd expressed its shift of focus from pursuing scale to ensuring profits and cash flow as the global economy enters a prolonged recession, Reuters reports.
- "With survival the main principle, marginal businesses will be shrunken and closed, and the chill will be felt by everyone," founder Ren Zhengfei's email read.
- He reportedly drew attention to the importance of the company's traditional focus on information and communications technology (ICT).
- He cited the company's cloud computing, digital energy, and smart car businesses as prospective areas for development.
- However, he expressed uncertainty over Huawei's outlook beyond the next couple of years.
- The U.S. put Huawei on an export blacklist in 2019, restricting access to critical technology citing national security concerns.
- The U.S. continues to restrict China's other chipmakers' access to cutting-edge semiconductor technology, citing similar concerns.
- The U.S. also recently launched a Chips Act restricting investments and expansion in China.
- China opposed the U.S. Chips Act and assured aggressive countermeasures.
- Huawei's clocked a 52% drop in its first-half profit to 15.08 billion yuan, as economic slowdown, COVID-19 resurgence, and supply chain challenges weighed on the business.
- Alibaba Group Holding Limited (NYSE: BABA), which serves as a barometer for the country's tech industry, clocked flat revenue growth in the first quarter to $30.69 billion, beating the consensus of $30.05 billion.
- Photo via Wikimedia Commons
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
