Research on the Driving Forces and Impact of Huawei's Business Policy Transformation

In the second half of 2022, Huawei Technologies Co., Ltd. (hereinafter referred to as "Huawei") internally published an article titled The Companys Business Policy Should Shift from Pursuing Scale to Pursuing Profit and Cash Flow. In the article, Huaweis founder, Ren Zhengfei, stated that the global economy was expected to continue declining, leading to reduced consumer spending. As a result, Huawei needed to adjust its business policy, shifting from a focus on scale expansion to prioritizing profit and cash flow, with survival as the primary objective. This paper analyzes the driving factors behind Huawei's business policy shift by examining its internal and external environment from political, economic, financial, and business development perspectives. It outlines the transformation process and summarizes the financial impact based on relevant data. The paper extracts valuable insights from Huawei's experience, providing a reference for similar enterprises on how to adjust their business strategies in a changing environment.