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As SOE reform continues, authorities must focus on such thorny issues as incomplete corporate governance systems and lack of internal controls, said Li.

As a result, operators are finding it difficult to remain profitable, and customer experience is being sacrificed due to low expenditure.

As for the scuttling of the deal with AT&T, Yu said "we are still very confident in the US market. Huawei has already made lots of progress in markets like Europe, Korea and Japan, so we believe we will also make a breakthrough in the US in the future because consumers love our products."

As a demonstration of Huawei's push to promote its computing business, the company set up an intelligent computing business unit in December, with the aim of providing support for the advent of the internet of things era.

As he further explained, the effects of China shifting toward a consumer-led economy combined with increases in traditional manufacturing costs, the need for innovative improvement to consumer experiences, and the drive for more efficient processes have resulted in an increased demand for innovative technologies.