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Author Topic: Huawei to pay bonuses to employees who helped it thrive through the U.S Ban  (Read 10264 times)

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According to Reuters, Huawei announced today that it is paying out the equivalent of $286 million in bonuses to its research and development teams and employees that helped it get by without its U.S. supply chain. Besides rewarding some of its employees with a bonus, Huawei is also doubling the pay this month of nearly all of its 190,000 workers.

The story is well known by now. The U.S. considers Huawei a national security threat because, under Chinese law, it can be asked to spy on American companies and consumers. As a result, U.S. lawmakers are afraid that the manufacturer's phones and networking equipment contain backdoors sending information to Beijing. Huawei has repeatedly denied this, but on May 16th the U.S. Commerce Department placed the firm on the Entity List preventing it from accessing its U.S. supply chain.

Right away, it seemed that the Entity List placement would harshly impact Huawei. The company had spent $11 billion on U.S. parts in 2018 and companies like Qualcomm, Intel and Micron announced that they were cutting ties with the company. And when Google followed suit, many wondered how Huawei would weather the storm. As it turned out, Chinese consumers, riding a wave of patriotism, bought Huawei devices in numbers as a reaction to what they consider to be U.S. bullying of the company. During the third quarter of this year, shipments of the company's phones in China soared 66% year-over-year giving it an incredible 42.4% share of the domestic market.


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