BEIJING (Reuters) - China's telecommunications giant Huawei said on Tuesday it has allocated a cash prize of 2 billion yuan ($ 286 million), which will be offered as cash rewards to employees who contributed to its contingency plan to help reduce the impact of the US trade embargo.
The company, the world's largest telecommunications service provider, said it was trying to find alternatives to US equipment after the United States banned it in May from doing business with US companies, hampering its ability to search for key parts.
Huawei's human resources department sent a notice to employees - a copy of which was obtained by Reuters - saying the money was a sign of appreciation for work in the face of US pressure.
A Huawei spokesman said each of Huawei's 190,000 employees would receive double his salary this month, in recognition of efforts to help the company overcome tough times.
"The cash rewards will go to the R&D teams, especially the high-silicon chip arm, which has come up with alternatives to US components, those who are shifting the company's supply chains away from the United States, and people who are developing the company's internal operating systems."
Huawei's plan was first published by the South China Morning Post on Tuesday.
Many in the US government believe that the company's equipment, especially in relation to the 5G networks, poses a threat to security, because of the company's alleged relations with the Chinese government. Huawei denied the Beijing government played any role in its operations.
Although exempted from many US exceptions, Huawei has been working on alternatives, after seeing the disruption of US sanctions on its smaller Chinese rival ZTE in early 2017.
The company is the world's second-largest smartphone maker, and the increase in device shipments helped it to report a 27% rise in third-quarter revenue last month.
Huawei has a proven track record of rewarding its employees in cash, especially in times of revenue growth.