SHENZHEN, China—Huawei Technologies Co. said it plans to refocus on existing markets, following a series of setbacks in the U.S. and as the technology industry gets caught up in the spiraling trade spat between Washington and Beijing.

“It is beyond myself to clearly explain what is going on between the two countries,” Eric Xu, one of the Chinese telecom giant’s three rotating CEOs, said at an annual meeting in Huawei’s home city of Shenzhen. He said Huawei will spend more effort serving existing customers.

The...