At Huawei's annual report conference, Xu Zhijun said that "the US government is destroying the global technology ecosystem"

On March 31, Huawei released its 2019 annual report, which showed that Huawei's overall operations were stable, with global sales revenue of RMB 858.8 billion, a year-on-year increase of 19.1%, net profit of RMB 62.7 billion, and cash flow from operating activities of RMB 91.4 billion, a year-on-year increase of 22.4%.

During the Q&A session, a reporter asked, "Recently, U.S. media reported that the White House is considering a new export control measure that may restrict chip manufacturers including TSMC from supplying Huawei. How will Huawei respond to possible stricter export controls?"

Huawei's rotating chairman Xu Zhijun responded to this. The following is his full answer:

I saw the news reported by Reuters, and I also saw the news reported by China Daily on March 29, 2020, which mentioned that if the new measures are implemented, the Chinese government will have no choice but to take the same measures against certain companies.

I think the Chinese government will not let Huawei be at the mercy of others, or ignore Huawei. I believe the Chinese government will also take some countermeasures. Why can't we prohibit the use of 5G chips and base stations, smartphones, and various smart terminals containing 5G chips from American companies in China for the same network security reasons? Even in this case, Huawei can still buy chips from Samsung in South Korea, MTK in Taiwan, and Spreadtrum in China to produce mobile phones. Even if Huawei has made sacrifices because it cannot produce chips for a long time, I believe that many chip companies will grow up in China and develop and produce products with chips currently provided by chip manufacturers in South Korea, Japan, Europe, and Taiwan.

If the US government can arbitrarily modify the "Foreign Direct Product Rules", it will actually destroy the global technology ecosystem. If the Chinese government takes countermeasures, what impact will it have on the industry? If we continue to deduce, this destructive chain reaction is shocking.

Once Pandora's box is opened, it may cause devastating chain damage to the global industrial ecosystem, and it may not only destroy Huawei. We hope to cooperate with the global industrial chain, focus on the challenges of customers and the industry, provide reliable products and customers for global customers, and provide customers and consumers with good products and experiences. I hope this information is false, otherwise there will be endless troubles. It is difficult for any player in the global industrial chain to remain immune.