Huawei founder Ren Zhengfei insists on switching to US sanctions software

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The founder of Chinese technology giant Huawei Ren Zhengfei called on the company’s employees to “dare to lead the world” in the field of software, as the company seeks growth beyond the hardware operations that US sanctions have crippled.

The inside note, seen by Reuters, is the clearest evidence of the company’s direction, as it responds to the enormous pressure on the headset business that was at its core.

Rehn said in a note that the company is focusing on software because future developments in this area are largely “beyond US control and we will have greater independence and autonomy.”

Because it will be difficult for Huawei in order to produce advanced hardware in the short term, it must focus on building software ecosystems, such as its HarmonyOS the operating system, its Mindspore cloud AI system and other IT products, the note said.

Former President of the United States Donald Trump blacklisted Huawei in 2019 and banned it from accessing critical technology originating in the United States, hampering its ability to design its own chips and source components from external suppliers.

President of the United States To Joe Biden the administration has not indicated it will lift Trump’s sanctions.

The blacklist is also prohibited Google from providing technical support to new Huawei phone models and access to Google mobile services, a suite of developer services for which most Android applications are based.

Huawei’s annual report for 2020 does not break down what part of its revenue of CNY 891.4 billion (approximately 10.12 630 kroner) is revenue from its software.

Open source approach

Rehn’s note also said that the impetus for the software would depend on finding the right business model, and that the company should take an open source approach, urging employees to “absorb nutrients” through open source communities.

He said Welink’s business communications platform relies on traditional software licensing, which is unsuitable for cloud computing and is inferior to the technology giant’s competing product. Ali Baba.

Given the difficulty of working in the United States, Rehn’s note said the company needed to strengthen its position at home and build up its territory with a view to possibly excluding the United States.

“Since we dominate Europe, Asia-Pacific and Africa, if American standards do not match ours and we cannot enter the United States, then the United States cannot enter our territory,” it said.

Rehn’s note confirms a direction implied by previous company announcements that hinted at a change in the headset’s hardware.

In April, rotating chairman Eric Sue said the company would invest more than $ 1 billion (approximately 7,300 kroner) this year in its intelligent driving business.

It is also expanding its smart car partnership with state-owned Chongqing Changan Automobile to include the design and development of semiconductors for automatic use, sources told Reuters earlier this month.

In addition to the pressure of sanctions, Huawei is known for its grueling work culture, and the note recommends that software teams hire psychologists to help young recruits who might find the company emotionally challenging.

“Now some young people have a high IQ, but their equalizer may be low and their mentality is not mature and it is easy for them to get sick,” Wren said.

© Thomson Reuters 2021

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