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Exclusive-Huawei founder urges shift to software to counter U.S. sanctions

Berita 24 English -  CEO of Huawei Technologies, Ren Zhengfei, has encouraged his staff to "dare to lead the world" in software, n...

Berita 24 English - 
CEO of Huawei Technologies, Ren Zhengfei, has encouraged his staff to "dare to lead the world" in software, noting that the U.S. sanctions against Huawei have hobbled the company's hardware operations.

This is the clearest indication yet of the company's direction to respond to the intense pressure placed on the handset business that was the nucleus of the company.

In the memo, Ren stated that the company's strategy was to focus on software development because that industry will have more independence and autonomy.

The analysis suggested that Huawei will face a significant challenge in the short term, as it lacks the advanced hardware necessary to produce more. To compensate, the firm should focus on developing software ecosystems, such as its HarmonyOS operating system, its cloud AI system Mindspore, and other IT products, the report stated.

In 2019, Donald Trump ordered the U.S. Commerce Department to deny Huawei access to critical U.S.-origin technology, effectively strangling its capacity to design its own chips and get its supplies from outside vendors.

No indication has been given that the Trump administration will reverse Obama's sanctions.

Additional to being denied permission to help new Huawei phone models, Google was also forbidden from providing technical support for the new Huawei models and accessing Google Mobile Services, the core services package on which most Android apps are built.

The 891.4 billion yuan ($138.70 billion) in revenue Huawei reported for 2020 is not broken down in the company's 2020 annual report.

open-source approach

Ren's note also urged the company to employ an open-source business model and recommended adopting an open-source approach. It stated that this approach would necessitate staff members "ingesting nutrients" by participating in open source communities.

According to him, the Weblink business communication platform for business entities had previously used traditional software licensing, which was ill-suited to cloud computing and inferior to a competitor from Chinese e-commerce giant Alibaba.

Despite the difficulty of working in the US, Ren's note suggested that the company expand at home to have options for removing the US.

It is then claimed that once we control Europe, the Asia-Pacific, and Africa if the United States fails to uphold our standards, we cannot enter the United States. The United States cannot enter our territory.

Following the previous announcements from the company, it appears that the company has indeed shifted away from handset hardware.

On April 10, company co-founder and chairman Eric Xu announced that the company planned to invest more than $1 billion in its intelligent driving business in 2018.

Reuters reported that earlier this month that the smart car partnership between Creative Strategies and the state-owned Chongqing Changan Automobile Co Ltd is expanding to include the design and development of auto-use semiconductors.

Although sanctioned, Huawei is widely known for its gruelling work culture. Software teams are advised to employ psychologists to assist younger employees who may have difficulty adjusting to the company.

One study claims that while some young people have high IQs, their emotional quotient might below, and their mental maturity is not advanced, which leaves them vulnerable to illness.

6.4270 Chinese yuan renminbi is equal to $1.

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