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

Operational Risks 
Business continuity:
 In today’s highly globalized 
and highly specialized world, Huawei relies heavily 
on many third parties to help us in procurement, 
manufacturing, logistics, and global technical services. 
This makes business continuity management (BCM) 
critical.
Through years of sustained investment, Huawei 
has established a BCM system for domains such as 
procurement, manufacturing, logistics, and global 
technical services. This system covers our end-to-end 
processes, from suppliers to Huawei and on to our 
customers. As part of this system, we have developed 
and established effective measures to manage risks 
that arise during our daily work. Specifically, we have 
built up management organizations, processes, and 
IT platforms, prepared business continuity plans and 
incident management plans, and organized BCM 
training and drills for employees.
On May 15 and August 17, 2020*, the US Department 
of Commerce amended their foreign-produced direct 
product rule and released the final ruling on Huawei 
Technologies Co., Ltd. and a number of its non-
US affiliates. This means the export, re-export, or 
in-country transfer of any item subject to the EAR 
(including hardware, software, and technologies) to 
Huawei or its listed affiliates requires a license from 
the Department of Commerce.
*  Local dates in Washington D.C.
This ruling has affected our business development to 
some extent. As a staunch advocate of globalization, 
we will continue to pursue supply chain diversity 
without depending on any one country or region, 
and then build our supply continuity upon the global 
supply chain. Remaining on the Entity List does not 
restrict or prohibit Huawei from providing products 
and services to our customers in accordance with 
compliance requirements. Based on the principles 
of collaboration for shared success and mutual 
development, Huawei is confident in our ability 
to work with partners to forge a secure, reliable, 
competitive, and healthy industry chain. Huawei 
products will continue to meet customer requirements 
for sustained supply and delivery, and we will 
continue to deliver quality products, solutions, and 
services to our customers worldwide.
For further information on business continuity, see 
pages 59 to 60 of this Annual Report.
Information security and IP
: Although Huawei 
has adopted stringent information security measures 
to protect its IP, it is impossible to completely 
prevent other companies from improperly using our 
proprietary information or patented technologies. 
Even when we are able to protect our IP through 
the judicial means, we may still suffer losses due to 
improper usage.