Founded in 1987, Huawei is a leading global provider of information and communications

       
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External Risks
Macro environment: 
The global economy is 
expected to gradually rebound in 2021. However, 
some countries may still enact new restrictions on 
economic activities until COVID-19 is under control. 
Such restrictions could lead to uneven recovery 
between countries. Trade frictions and geopolitical 
tensions are likely to continue straining business 
confidence and investment. Against this backdrop, 
Huawei will continue facing an uncertain external 
environment. Therefore, business departments 
and field offices must ramp up efforts to identify 
and control risks and promptly adjust strategies 
accordingly.
Compliance: 
Operational compliance provides a 
solid foundation on which Huawei can survive, and 
continue serving and contributing to the world. 
Huawei has always been dedicated to strictly 
complying with all applicable laws and regulations of 
the countries and regions in which it operates. These 
include all applicable laws and regulations of the UN, 
US, and EU.
Through sustained investment, we have established 
a compliance management system that applies to all 
our businesses and employees worldwide and covers 
all legal obligations including but not limited to 
trade compliance, financial compliance, anti-bribery 
compliance, intellectual property (IP) and trade secret 
protection, cyber security and privacy, and anti-unfair 
competition. This enables the systematic management 
of compliance risks through established policies, 
organizations, regulations, processes, etc.
Despite these efforts, we may still experience negative 
impacts due to the complex legal environments 
of some of the countries and regions in which we 
operate. For example, a lack of clarity or transparency 
in regards to local laws or ambiguity surrounding 
the legal system or law enforcement. Huawei will 
continue, as always, to learn from industry best 
practices and take preventative measures to address 
risks. The certainty of legal compliance is our 
best bulwark against the uncertainty of external 
environment.
Trade:
 Throughout 2020, many multinational 
companies, small– and medium-sized enterprises, 
and individual economies were afflicted by trade 
protectionism and supply chain adjustments. As 
trade restrictions increase, deglobalization and 
protectionism have become two prominent risks 
within global trade. At the same time, the challenges 
facing international trade were exacerbated to an 
unprecedented degree by the COVID-19 pandemic. As 
a result of pandemic-related restrictions enforced by 
many governments, as well as disruptions of supply 
chains and logistics, 2020 saw a sharp decline in 
global trade volume.
In late 2020, China ratified the 
Regional 
Comprehensive Economic Partnership
 
(RCEP) with 
ASEAN countries, Japan, South Korea, Australia, and 
New Zealand. Despite this, uncertainty is still the 
watchword of future global trade policy. As a global 
company, Huawei embraces the values of free trade, 
open markets, and fair competition, while opposing 
trade protectionism. Huawei supports equitable and 
non-discriminatory multilateral trade rules and places 
trade compliance above its own commercial interests.
Natural disasters:
 It is our mission and primary 
social responsibility to maintain stable network 
operations. Earthquakes, typhoons, epidemics, and 
other natural disasters can impact Huawei’s business 
operations in many different ways and thus can 
impact the operations of the networks we have 
deployed. We have robust mechanisms for responding 
to natural disasters and continue to improve our 
capabilities in this regard. This has helped us to 
ensure business continuity and effectively support our 
customers’ network stability.
Country
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specific risks:
 Huawei currently operates 
in more than 170 countries and regions worldwide. 
Therefore, the complex international economic 
and political landscape could expose Huawei to