Ren Zhengfei on Huawei’s Success: Why Focusing on One Thing Wins

Ren Zhengfei: Huawei’s development benefited from China’s political reforms and Shenzhen’s economic policies, especially the 1987 private‑enterprise property law and later tax incentives that allowed the company to scale.

He stresses that for 28 years Huawei has attacked only the telecom “gate” – doing one thing and doing it big – investing over 600 billion CNY in R&D and 500‑600 billion CNY in market services each year, which gave it a lead in big‑data transmission.

Ren says Huawei continuously transforms by learning from Western management, spending billions on consulting, and hiring foreign experts (e.g., former Toyota and German engineering teams) to professionalise its processes.

When asked about weaknesses, he admits Huawei once faced a near‑collapse because rapid growth made staff reluctant to work abroad; the company responded by offering higher compensation in places like Africa.

He explains why Huawei never went public: the company prioritises ideals and long‑term goals over shareholder pressure, fearing that a stock market focus would limit its ability to operate in “no‑man’s land.”

Ren highlights the importance of a strong IP “protective umbrella,” extensive cross‑licensing agreements, and the need for robust legal frameworks both domestically and abroad.

Regarding Shenzhen’s role, he praises the city’s market‑oriented, law‑based governance that lets enterprises operate freely while the government sets clear rules.

He warns that high costs will erode competitiveness and that China must avoid “bubble” growth, instead focusing on solid industrial modernization, land allocation, and balanced labor‑capital distribution.

Ren stresses that true innovation rests on theoretical breakthroughs, which often precede practical understanding, and that China must protect intellectual property to nurture large‑scale industries such as VR, AI, and biotechnology.

Finally, he advises Chinese firms to obey the law, build strong internal capabilities, and recognize that wealth alone does not guarantee successful overseas expansion.