Ren Zhengfei, CEO of Huawei, announced at the company's Shenzhen headquarters that Huawei annually invests a substantial sum of 180 billion yuan in research and development (R&D). Notably, 60 billion yuan of this investment is earmarked specifically for basic theoretical research, which is conducted without any performance evaluation metrics. The remaining 120 billion yuan is allocated towards product research and development. Ren Zhengfei emphasized the paramount importance of theoretical research, stating that without breakthroughs in this area, surpassing the United States in technological advancement would be a formidable challenge.