Huawei Applied sciences Co. founder Ren Zhengfei predicted a grim long run for the arena financial system this week in an inner memo to staff. He mentioned Russia’s conflict with Ukraine and the U.S. tech blockade towards China will make the following decade “an excessively painful length within the human historical past.”
To organize for a chronic recession, he prompt the corporate to right away lower all unprofitable product strains, and “move the coolness to everybody.”
So he did. After the memo turned into public, the Chinese language inventory marketplace tanked Aug. 24. Costs of greater than 4,400 shares plunged, representing 9 out of 10 corporations indexed on mainland inventory markets. The automobile and semiconductor industries have been hit specifically onerous.
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