Entering the United States into Huawei, Yu Chengdong is anxious

At the start of 2018, for Yu Chengdong, the chairman of Huawei's consumer business, it seemed like a challenging period. At the CES exhibition in the U.S. in January, Huawei was expected to announce a partnership with AT&T, but due to concerns raised by U.S. lawmakers about Huawei's security risks, the deal was put on hold. This led Yu Chengdong to express frustration during the event, stating that "Huawei and U.S. carriers have broken down, which not only harms Huawei and the operators, but also American consumers." A photo caption reads: "Entering the U.S. market, Yu Chengdong is anxious." However, at the recent MWC exhibition in Spain, Yu Chengdong did not seem to be discouraged. In an interview, he criticized the U.S. market, saying, "Many operators around the world are willing to work with Huawei, but in the U.S., our competitors use the government to exclude Huawei unfairly, which shows their fear of Huawei’s rising influence." **What is Yu Chengdong’s real concern?** While Yu is known in the industry as “Yu Dazui,” there are many other companies facing similar challenges. However, this time he directly criticized the U.S. government, which drew backlash from within Huawei. Chen Lifang, Huawei’s senior vice president and head of public and government affairs, stated, "It's wrong to criticize others without being accepted. We can only work harder to maintain openness and transparency. Even though the U.S. government hasn’t chosen Huawei yet, we remain open and transparent if they are willing to communicate." She also clarified that Huawei did not authorize Yu to speak on behalf of the company or endorse his views. In summary, Yu’s remarks were seen as personal opinions filled with negative energy, suggesting that the U.S. does not accept Huawei because it isn’t deep enough. At the same time, he acknowledged the U.S.'s advanced innovation and management, indicating that the U.S. remains one of Huawei’s key markets. After the official response, Yu quickly softened his tone. The reason behind this shift is likely that Huawei wants to re-enter the U.S. market. Ultimately, it will require a decision from the U.S. government. If Yu’s comments offend the “referee,” it could hurt Huawei’s chances of returning to the U.S. market. Given the overall interests of the company, Yu had to take responsibility for his words. The reality is that nearly 90% of U.S. mobile phone sales go through operator channels, leaving Huawei’s models available only in the open market, which limits significant sales growth. Yu’s goal of surpassing Apple in 2018 and becoming the top two globally has become uncertain, stretching the timeline to two more years. Although Yu frequently adjusted his timeline for overtaking Apple and Samsung—from three to five years, then to one to two years—there has been no clear statement. These shifting goals reflect his growing confusion and anxiety. **Entering the U.S.: A Long-standing Challenge for Huawei** In 2011, Yu Chengdong took over Huawei’s consumer business and transformed it into the world’s third-largest smartphone brand. Last year, Huawei’s smart device division became its most impressive financial segment, even becoming the main revenue driver for the company. Yet, despite this success, Huawei still struggles to fully enter the U.S. market. It was hoped that at CES 2018, Huawei would partner with AT&T, marking a breakthrough. Instead, it faced another setback, adding to the list of U.S. failures. Without U.S. market approval, Huawei not only lost a multi-billion-dollar opportunity but also missed the chance to compete with Apple and Samsung in the high-end segment. This makes it difficult for Huawei to build a strong global brand. Domestically, the market is saturated and showing signs of decline, while Xiaomi is gaining ground. Faced with internal and external challenges, industry analysts began questioning Huawei’s prospects for 2018, which could affect its relationships with partners. As the leader of Huawei’s consumer business, Yu has taken on the role of a “scapegoat.” Through bold statements, he expresses dissatisfaction, subtly comparing Huawei to other Chinese brands and drawing attention from domestic consumers. Internally, the failure to enter the U.S. market has shaken employee morale. To regain unity, Huawei increased anti-corruption efforts, and Ren Zhengfei even imposed a fine of 1 million yuan. On one hand, strict discipline was enforced; on the other, leadership demonstrated courage and accountability, helping to rebuild the company’s image.

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