Huawei Founder Ren Zhengfei Urges Shift to Software to Counter US Sanctions

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Founder of Chinese tech big Huawei Technologies Ren Zhengfei has known as on the corporate’s workers to “dare to lead the world” in software program as the corporate seeks development past the {hardware} operations that US sanctions have crippled.

The inside memo seen by Reuters is the clearest proof but of the corporate’s course because it responds to the immense stress sanctions have positioned on the handset enterprise that was at its core.

Ren stated within the memo the corporate was specializing in software program as a result of future improvement within the discipline is essentially “outside of US control and we will have greater independence and autonomy”.

As will probably be exhausting for Huawei to produce superior {hardware} within the quick time period, it ought to concentrate on constructing software program ecosystems, comparable to its HarmonyOS working system, its cloud AI system Mindspore, and different IT merchandise, the notice stated.

Former US president Donald Trump put Huawei on an export blacklist in 2019 and barred it from accessing important US-origin expertise, impeding its capability to design its personal chips and supply parts from exterior distributors.

US President Joe Biden’s administration has given no indication it would reverse Trump’s sanctions.

The blacklist additionally barred Google from offering technical help to new Huawei telephone fashions and entry to Google Mobile Services, the bundle of developer providers upon which most Android apps are primarily based.

Huawei’s 2020 annual report didn’t break down how a lot of its 891.4 billion yuan ($138.70 billion) income was from its software program.

OPEN SOURCE APPROACH

Ren’s notice additionally stated the software program push would rely on discovering the fitting enterprise mannequin and that the corporate ought to undertake an open supply strategy, calling on workers to “absorb nutrients” by way of open supply communities.

He stated the corporate’s Welink enterprise communication platform had relied on conventional software program licensing, which was unsuited to cloud computing and inferior to a rival product from tech big Alibaba.

Given the problem of working within the United States, Ren’s notice stated the corporate ought to strengthen its place at residence and construct up its territory with a view to probably excluding the United States.

“Once we dominate Europe, the Asia Pacific and Africa, if U.S. standards don’t match ours, and we can’t enter the US, then the US can’t enter our territory,” it stated.

Ren’s notice confirms a course implied by earlier bulletins from the corporate that hinted at a shift away from handset {hardware}.

Rotating chairman Eric Xu in April stated the corporate would make investments greater than $1 billion this 12 months in its clever driving enterprise.

It can also be increasing its sensible automobile partnership with state-owned Chongqing Changan Automobile Co Ltd to embrace the design and improvement of auto-use semiconductors, sources instructed Reuters earlier this month.

Apart from the stress of sanctions, Huawei is understood for its gruelling work tradition and the notice really helpful the software program groups ought to rent psychology professionals to assist younger recruits who would possibly discover the corporate emotionally difficult.

“Now some young people have high IQs, but their EQ might be low, and their mentality is not mature, and it’s easy for them to get sick,” Ren stated.

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