Huawei Is Truly Finished! Full Collapse Inside and Out, Top Experts Leaving, Facing U.S. Charges

Added: 2026-04-30

[00:00:04]Oh my gosh, I was really shocked when I saw a post criticizing Huawei today. The person who posted it was actually complaining about her husband. She said he was still working at 3:55 a.m.

[00:00:14]Apparently, her husband is a team leader at Huawei and he's been working these long hours for years. He started off as a young guy, but has turned into a middle-aged greasy uncle from all the overtime. She said it was taking a toll on his health and affecting their family life. You know, at Huawei, long hours are pretty normal. But what really blew me away were the responses. One person said Huawei is ruining society and that the whole 35-year-old retirement thing was something Huawei created. Then there was this hilarious post about a guy's wife being in her ovulation period and they were trying to conceive. After completing the mission that night, he had to pull up his pants and go straight back to work. Someone else said they worked at Huawei for just 3 years and then got depression.

[00:00:58]>> In mainland China, Huawei has long been criticized. It's been accused of helping the Chinese Communist Party with surveillance and also for fostering a so-called wolfish corporate culture that enslaves its employees. Huawei requires every employee to undergo tough grassroots training and emphasizes sacrifice to build the wolf-like mentality needed to survive in a harsh environment. Huawei's wolfishness shows in its ruthless expansion, its efforts to crush competitors, and the harsh competition inside the company. It encourages employees to dedicate themselves to the company and step on each other for success, all while putting profits first and creating a sweat shop atmosphere. At the same time, Huawei also pushes employees to be loyal to their Wolf King, suppressing internal complaints about exploitation, which has led to employee backlash. Recently, Huawei has been exposed for a growing loss of talent. Many believe this is closely tied to the wolfish culture. An insider at Huawei recently told the Epoch Times that the atmosphere in the company is very oppressive right now, and many people are choosing to leave.

[00:02:08]It's not just ordinary employees either.

[00:02:11]Many technical experts have also left.

[00:02:13]Some are unhappy with their pay, while others just can't stand Huawei's harsh corporate culture. The insider also revealed that Huawei is using confidentiality agreements signed by former employees to prevent them from seeking jobs at competitors in Shenzhen.

[00:02:28]At least four top Huawei experts have resigned since March this year. Huawei AI leader Wong Yun Hu announced his resignation from Huawei in March 2026.

[00:02:39]Wong joined Huawei after graduating from Ping University in 2018. By the end of 2021, he was promoted to head of the algorithm application department. In 2025, he became the director of the Noah's Arc Lab, responsible for the development of the Pangu large Model.

[00:02:56]Before his departure, he had just participated in the successful completion and open-source release of the full-size Pongu models parameter matrix. Huawei human computer interaction expert Yoy Shong, who earned his PhD from the University of St. Andrews in the UK joined Huawei in April 2021 as a genius youth. He worked in Huawei's consumer business group and 2012 lab leading the exploration and implementation of several technologies including wearable gesture recognition, cross device collaboration and AI agents. In March 2026, he left Huawei to join the digital intelligence company Digital China. There he entered the cutting edge technology lab HL lab focused on embodied intelligence and human computer interaction technology.

[00:03:44]The head and chief technology expert of Huawei cloud's physical intelligence innovation lab formerly left Huawei in early March 2026 and founded a new company called Ola Dimensions. Entering the consumer grade embodied intelligence sector. During his five years at Huawei, he built the company's first and largest embodied intelligence team from scratch, led Huawei Cloud's embodied intelligence strategic planning for four consecutive years, and established a comprehensive technical system. Huawei's genius youth and 19th level technical expert Jolie Chen also resigned in March 2026. He joined HJO Lrange embodied technology company focusing on the scaling of embodied intelligence operating systems, a Gent OS and hardware. Jao entered Huawei in 2023 as a master's graduate in the Genius youth program which is rare since most candidates are PhDs. In just over two years, he was promoted to 19th level, becoming one of Huawei's youngest technical executives. Earlier, Ding Wen Chao, Huangqing Chu, and Pungju Hui also left Huawei to join the embodied intelligence field. Pungu Hui, who created a bipedal robot during his university days, became a YouTuber and was noticed by the genius youth program.

[00:05:02]After passing seven interviews, he joined Huawei, working in the computing product lines Shan Tong department. At the end of 2022, Pong chose to leave Huawei and co-founded Agibbot Robotics as its CTO. His leader at Huawei, Dong Tai Hua, later became the founder and chairman of Aubot. Pongja Huay essentially opened the door, being the first genius youth to leave Huawei and enter the embodied intelligence field.

[00:05:28]Additionally, Huawei's sixth level expert, Jia, returned to his alma mater in January 2025, becoming a professor at the school of optical and electronic information at Huajong University of Science and Technology. Jung had worked at Huawei for 13 years and held 23 optical communication patents. In summary, the main cases of Huawei's talent loss involve several senior leaders and core technical talents leaving, covering key areas such as autonomous driving, large AI models, and photonix technology. As for the reasons behind Huawei's talent loss, insiders revealed that many of the 56 PhD employees who resigned pointed to weak technical capabilities and arbitrary decision-making from their direct supervisors. This led to inefficiencies in project progress and severe internal resource conflicts. Additionally, thick departmental barriers and difficulty in crossfield collaboration further restricted innovation. Moreover, young people are no longer willing to sacrifice their health and family for loyalty to a company. Some Huawei employees said that the elimination system not only placed immense pressure on every employee, but also created a cold, competitive internal environment where everyone saw each other as a potential enemy. It seems that Huawei's wolfish culture has now become a bottleneck for its development.

[00:06:49]Recently, an insider leak within Huawei caused a stir. The US Department of Justice's criminal lawsuit against Huawei is about to go to trial. Several insiders expressed concerns about the outcome, believing that Huawei's future is facing huge uncertainty. Although Huawei's CFO, Mang Wan Joe, resolved her personal charges through a deferred prosecution agreement in 2021 and has since returned to China, the criminal lawsuit against Huawei continues. This case is not just about fines or reputation. It could deeply impact Huawei's position in the global supply chain and the future trajectory of China's high-tech industry. In August 2022, founder Ren Jangfay clearly stated, "Survival must be our primary goal." In an article on Huawei's internal network, he discussed, "With the global economy continuing to decline and the impact of the pandemic, consumption capacity will significantly drop, putting not only pressure on our supply, but also on the market. From 2023 to 2025, survival must become the core of all work. There can be no slackening. However, the pressure of survival is not just about market and supply chain issues. The legal uncertainty looms over Huawei. According to a ruling from the US Eastern District Court in New York, the trial for the US Department of Justice's lawsuit against Huawei will begin on May 4th, 2026 and may last several months. According to Huawei's 2025 annual financial report, the judge ruled on March 9th, 2026, changing the trial date from May 4th to June 15th. The case dates back to December 1st, 2018 when Huawei CFO Muan Joe was arrested in Vancouver International Airport during a connection. This was carried out under a temporary extradition request from the US Department of Justice, executed by Canadian authorities. The direct legal basis for the arrest was charges of bank fraud and wire fraud centered around allegations that Mung made false statements to HSBC executives in 2013.

[00:08:51]She allegedly concealed the actual relationship between Huawei and the Hong Kong company Skycom. Mung has served on Skycom's board of directors. According to the facts and indictment released by the US Department of Justice, Skycom was a Hong Kong company primarily operating in Iran. Around 2007, Huawei through a subsidiary held and effectively controlled Skycom. Key decisions for Skycom were made by Huawei and its head of Iran operations was a Huawei employee. It was reported that Huawei set up a shell company in Hong Kong to bypass US regulations and sell equipment containing US-made products to Iran.

[00:09:30]Mung Wanjo was a director of this company. The profits from the sales to Iran went through HSBC. Mung later provided HSBC with an explanation that denied the transaction involved embargoed products, thus creating false statements. The US government places great importance on this case for deeper reasons. US sanctions on Iran have been in place since 1979, primarily restricting Iran's access to advanced technologies, including dualuse telecommunications equipment that could be used for surveillance, military communications, or nuclear related purposes. SkyCom is accused of not only selling ordinary communications equipment, but also helping the Iranian government install surveillance equipment to monitor activities such as the 2009 anti-government protests. On July 2nd, 2025, the judge ruled that Huawei must face criminal charges. The indictment, which included 16 counts, accused Huawei of extorting its brand, stealing trade secrets from several companies, and engaging in wire and bank fraud. Judge Anne Donnelly ruled that the prosecution had reasonably demonstrated that Huawei using Skycom conducted business with Iran and indirectly benefited from over 100 million in funds which flowed through the US financial system. Huawei has consistently denied these allegations, claiming that Skycom was an independent local partner and not a subsidiary.

[00:10:55]Huawei also attempted to dismiss 13 of the 16 charges, but the court rejected this request. On April 12th, 2026, US President Donald Trump talking to Fox Business stated that if Beijing were to provide military assistance to Tyrron, it would face staggering new tariffs of 50%. This statement came at a crucial point in the US Iran negotiations. The US remains highly vigilant about any external support that could enhance Iran's capabilities and Huawei's past alleged violations have become a typical example within this policy framework.

[00:11:31]This prolonged lawsuit will continue to bring external pressure and internal anxiety to Huawei. Insiders are concerned that if the trial results are unfavorable or are amplified in the current geopolitical climate, Huawei may face stricter secondary sanctions, tighter global financial channels, and even additional legal risks at the executive level. These uncertainties directly challenge the company's bottom line of survival. Moreover, with the decline of terminal business profits, the automotive market caught in a price war, and the pressure on the upstream and downstream ecosystems, Huawei finds itself at a crossroads. On March 31st, 2026, Huawei released its 2025 financial report. The company achieved a revenue of over 880 billion yen, a 2.2% year-on-year increase, far below the 22.4% growth in 2024. Net profit reached over 68 billion yen, an 8.7% increase, but has significantly declined compared to the 113 billion yen in 2021 and 87 billion yen in 2023. Notably, Huawei's profit growth did not come from its core business, but was dependent on asset disposal and valuation changes.

[00:12:44]Excluding these factors, Huawei's actual net profit for 2025 was a loss of 11.4 billion yen. Huawei's two core businesses, terminal and ICT infrastructure, are both showing signs of fatigue. One, terminal business revenue reached 344 billion yen with only a 1.6% increase compared to a 38.3% growth in 2024. The high-end dividends from the mate 60 and pure 70 series are over and the overall Chinese smartphone market remains sluggish. Two, information and communications technology infrastructure revenue was 375 billion yen with a 2.6% increase, lower than the 4.9% growth in 2024. The two core businesses together accounted for 82% of total revenue, but with weak growth, indicating that Huawei's core profitability is declining. Regarding R&D investment, Huawei continued to maintain a high level of investment in 2025, reaching 192 billion yen, a 7% increase. R&D expenses accounted for 21.8% of total revenue. Over the past decade, cumulative R&D investment has exceeded 1.3 trillion yen. However, the contrast between high investment and low growth highlights the challenges in the current business monetization. This reflects that Huawei's huge investments in supercomputing nodes, Harmony OS ecosystem, and AI infrastructure are primarily aimed at dealing with sanctions and reinventing the wheel.

[00:14:14]However, international competitors rely on standardized lowcost architectures, making it difficult for Huawei's high investment to translate into high profits. Instead, it has even backfired, draining the company's limited business resources. Consumers have widely criticized Huawei smartphones and automotive products for their poor value for money. After the Mate60, Huawei's product offerings have become mediocre, and its ITO series struggles to compete with brands like Xiaomi and Neo. While the smart car segment achieved a revenue of 45 billion yen, a 72.1% year-on-year growth, the growth rate is significantly lower than the 474% in 2024, and it only accounts for 5.1% of total revenue. Amid fierce price wars, Huawei's automotive business is struggling to become a new profit pillar. Industry experts warn that if the ITO or Judy series fails, its profit margins could collapse instantly. On platforms like Juu, some users have analyzed that the smart car business cannot save Huawei. Due to obstacles in the high-end smartphone market, Huawei's former profit driver communications infrastructure has grown by only 2%.

[00:15:24]Meanwhile, smart cars account for less than 5.1% of total revenue and are still unable to take on a significant role.

[00:15:31]These challenges leave Huawei's prospects uncertain. The article further analyzes that Huawei's involvement in the Chinese smart car market is heading into a brutal price war, one that resembles or even exceeds the internet industry's burning money battles. The article states that in 2025, the automotive market is in a fierce race to the bottom with both new and old competitors engaging in cut-throat battles, making it hard for a pure tech supplier to survive. Huawei must collaborate with automakers and other traditional giants to stay in the game.

[00:16:03]It argues that if any of the itto, Judy, Shien or Junzi models fail, Huawei's smart car business could lose its profit potential and fall into an endless black hole. Overall, Huawei's 2025 financial report reveals a contradiction. Despite showing profit growth on the surface, the growth is largely reliant on one-time gains. Core business growth is sluggish with cloud business falling behind and significant R&D investments are failing to translate into high profits. The issues of poor value for money in the smartphone and automotive sectors, the pressure from upstream and downstream ecosystems, and the price war in the smart car market, all contribute to the uncertainty surrounding Huawei's future.