Many of the Chinese tech companies have broadened its horizon to surpass the constraining boundaries of manufacturing only smartphones and the like, and have invested in and started various business ventures over the years.
This not only has increased the revenue for the companies but also have made living smarter in ways hitherto unimaginable. One such company is Huawei who like many of its Chinese counterparts and has ventured into various businesses. In a shocking move, however, recently, the Huawei Founder and CEO Ren Zhengfei mentioned that henceforth the company will not expand its business areas.
Although the expansion of its business areas will be hindered, this does not mean that the company will refrain from expanding its electronic wing. Huawei has confirmed that the company will go ahead to expanding the use of electronic systems and software computing systems in different industries. On the other hand, Ren Zhengfei has also mentioned that the company can help the coal industry achieve maximum efficiency and ensure safety at the expense of fewer people.
Although the move may appear to be sudden, it is by no means surprising.
The Chinese firm, Huawei is still battling the constraints put on the company by the Donald Trump administration in the US. The imposed ban has strengthened the company’s confidence that it will continue to grow and survive all on its own despite its travails across much of the western world where the company has been deemed as a potential security threat.
The decision not to expand its business could also be a by-product of the ban, but Huawei has refrained from commenting on it. On the other hand, Ren Zhengfei has implored the Biden administration to change track on the company and maybe even loosen the ban, after saying that the firm’s production capacity can be expanded.
As such Ren Zhengfei is hopeful that the relations between the US and the Chinese company could be rebuilt. Ren has expressed his willingness to speak with President Biden. Citing the need for economic growth both for the US and China, Ren mentions that he is welcoming to the idea of a phone call with President Biden discussing the joint development and shared success.
Ren mentioned, “I believe that’s going to be mutually beneficial. I believe that (the) new administration would bear in mind such business interests as they are about to decide their new policy. We still hope that we can buy large volumes of American materials, components, and equipment so that we can all benefit from China’s growth.”