Huawei incentivizing employees to help shift its supply chain away from the United States

On Tuesday, Huawei Technologies stated, it will disburse $286 million (2 billion yuan) in cash as rewards to staff who are working to help it weather a U.S. trade blacklisting.

Huawei is trying in full earnest to find alternatives to U.S. hardware after the U.S. Commerce Department nearly banned it in May from doing business with American firms.

In a notice to staff, Huawei said the cash reward is a mark of recognition for work in the face of U.S. pressure. It has also decided to double the pay for this month for nearly all its 190,000 workers, said a spokesman for the company.

The cash rewards are likely go to research and development teams and as well as to those working to shift the company’s supply chains away from the United States, said Huawei’s spokesman.

Intelligence agencies in many countries believe Huawei’s equipment, particularly its 5G networks, poses a security risk given its close ties to the Chinese government.

Although Huawei has not denied that charge, it has stated that the Chinese government does not play any role in its operations.

Although currently Huawei has been granted reprieves from U.S. trade ban, Huawei had been working to find alternatives after it witnessed the crippling effect of U.S. sanctions on its smaller Chinese rival ZTE Corp in early 2017.

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