Huawei has Increased Investment in Russia Because of US Sanctions, Founder Ren Zhengfei Says

Orinoco Tribune – News and opinion pieces about Venezuela and beyond
From Venezuela and made by Venezuelan Chavistas
By Celia Chen – Aug 31, 2020
As American companies grapple with potential losses and delays due to US restrictions on Chinese telecommunications giant Huawei Technologies, those from another emerging global superpower may benefit instead.
โAfter the United States included us in the Entity List, we transferred our investment in the United States to Russia, increased Russian investment, expanded the Russian scientist team, and increased the salary of Russian scientists,โ Huawei founder Ren Zhengfei said during a visit to top Chinese universities last month, according to a post by Shanghai Jiao Tong University on its official WeChat account on Sunday.
Huawei is the worldโs largest telecommunications equipment vendor, and also overtook Samsung to become the biggest smartphone manufacturer globally in the second quarter.
However, the Shenzhen-based company has become a pawn in the great power game between the US and China, and faces a life or death situation with Washingtonโs latest move to tighten its grip over Huaweiโs access to US core tech like semiconductors.
Richard Yu Chengdong, chief executive of the companyโs consumer business group, admitted earlier this month that the company may not be able to ship handsets with its high-end Kirin chips after this year owing to US trade sanctions.
RELATED CONTENT: US-Canada-HSBC Collusion Against Huawei is a Perfect Case Study in Hybrid War
At a summit in the eastern Chinese city of Qingdao over the weekend, Yu said the company was still โtrying to find a way to cope with the US ban on chipsโ, according to local reports.
In his comments to the universities last month, Ren said that Huawei would have to โremain on the path of self-improvement and open upโ to survive. โIf you want to be really strong, you must learn from everyone, including your enemies.โ
Aside from investing more in other countries, Huaweiโs plans to stay afloat also include focusing more on its budding cloud business, according to a Financial Times report on Sunday.
The company put its cloud computing unit, which still has access to US chips, on an equal footing with its smartphones and telecoms equipment businesses in January, according to the report.
Semiconductor suppliers affected by the sanctions are also continuing to lobby the Trump administration to loosen its latest restrictions. US chip suppliers like Qualcomm, which counted Huawei as a major customer, have been trying to get approval to resume sales to Huawei, while Taiwanese chip designer MediaTek has applied with the US government for a licence to continue supplying chips to the Chinese company.
RELATED CONTENT: China Warns of โAccidentalโ Military Confrontation with US
And while Ren said that โsome US politicians want Huawei deadโ, he reiterated that the company harboured no ill will toward the country.
โNo matter what, we will never hate the United States. It is only the impulse of some politicians, and does not represent American companies, American schools, and American society,โ he said in a speech during his visit to the Chinese universities.
Featured image: Ren Zhengfei, chief executive officer of Huawei Technologies, is interviewed in Shenzhen, southern China, on Oct. 16, 2019. Photo: Kyodo
Celia Chenย is a tech reporter for the Post, covering companies such as Tencent, JD.com and Foxconn. She also covers start-up news and China’s tech world. Prior to joining the Post, she worked for China Daily.