SHENZHEN (CHINA) – China’s Huawei Technology has published it’s first statements after Joe Biden took over US presidency. In a letter to his staff by the firm’s founder Ren Zhengfei he says that the United States remains a “beacon of technology” to be emulated and China’s Huawei Technology should consider cutting products in the wake of US actions against it.
The letter dated June of last year was shared to the public on the company message board on Friday.
After being targeted with several rounds of sanctions under Trump, Huawei has remained silent about its prospects under the Biden administration. Trump had stated that Huawei’s equipment poses a security risk, a claim which the company denies.
In a parting shot on Monday, the Commerce Department told semiconductor makers it would deny or revoke licenses for companies including chipmaker Intel Corp to sell products to Huawei, sources said.
Ren’s letter said that US actions had left Huawei “with a great mismatch between our strategy and our abilities, and that the company will have to revaluate some product lines, and consider cutting some products and staff that are unproductive.
The letter was posted publicly after former Huawei subbrand Honor announced new partnerships with major chip companies including Intel and Qualcomm, which it had lost access to due to the US action against the Huawei.
Huawei sold Honor to a consortium of the latter’s agents and dealers in November in a bid to help it regain access to chips.
Ren’s letter also said that while the company will keep its pay structure unchanged over the next three to five years, hundreds of senior ‘cadres’ had voluntarily taken demotions