Huawei does not consider any major acquisitions within five years

"Technology News" October 11, the recent domestic communications provider Huawei said Huawei will not consider any major acquisitions within five years, and will not consider IPOs (initial public offerings), Huawei will focus on improving management efficiency and maintain rapid growth.

Huawei, the senior vice president for Foreign relations, Chen Lifang, said Huawei has now grown into a giant company with 150,000 employees, so Huawei will need to focus on improving its internal management efficiency over the next 5-10 years. At the same time, Chen Lifang said Huawei chief executive Ren has made clear that the company should not make major acquisitions or IPOs for the next 5-10 years, a decision that has been agreed with other board members.

According to Chen Lifang, Huawei's top priority is to continue to invest in research and development operations. About half of Huawei's employees are currently working on research and development. Even in times of economic weakness, Huawei's management has not cut spending on research and development. The policy will not change in the future, she said. Last year, Huawei spent 4.8 billion dollars on research and development, accounting for nearly 14% of the group's revenues, well above the $3.8 billion trillion in 2011.

Chen Lifang points out that nearly 70% of Huawei's revenue comes from overseas markets, but Huawei's management is still concentrated at home, which is not suitable for the trend of global development. Chen Lifang said Huawei was giving more authority to overseas offices, such as the establishment of the London office as an international financial operations center, and Huawei executives would continue to work overseas for years to come.

In addition, Chen Lifang also talked about Huawei's image problem, she said that Huawei's overseas development encountered a lot of resistance, in the last year, some U.S. lawmakers have accused Huawei of threats to U.S. national security, so Huawei needs to pay attention to and maintain the image of the company in the eyes of others. She also said Huawei needs to consider how to better co-operate with other companies in the industry in order to build up the image of Huawei as a good corporate citizen.