Huawei is turning to software to counter US sanctions
Huawei is turning to software to counter US sanctions

Ren Zhengfei, founder of the Chinese tech giant Huawei, has urged employees to dare to lead the software world as the company seeks to grow beyond hardware operations hindered by US sanctions.

The Reuters internal memo is the clearest evidence of the company's management as it has responded to the tremendous pressure placed on its core business due to trade sanctions.

In the memo, Cheng Fei said, "The company has always focused on software, since the future development of this area is mainly outside the control of the United States, we will get a greater degree of independence."

The note added: Since it is difficult for Huawei to make advanced devices in the short term, the focus should be on building an ecosystem for software such as HarmonyOS, the AI ​​cloud system Minxin and other computing products.

Former US President Donald Trump put Huawei on the export blacklist in 2019 and blocked Huawei from accessing major emerging technologies in the US, preventing Huawei from developing its own chips and sourcing components from these outside suppliers.

The administration of US President Joe Biden has not announced that it will lift sanctions on Trump.

The blacklist also prevents Google from providing technical support for the latest models of Huawei phones and does not have access to Google Mobile Services (GMS), the suite of developer services on which most Android apps are based.

Huawei did not disclose in its 2020 annual report that its revenues of 891.4 billion yuan ($ 138.07 billion) came from its plans.

The Memorandum also states: Funding software development depends on finding the right business model. The company should use open source methodologies and encourage employees to include necessary elements through the open source community.

Cheng Fei stated that the company's Welink commercial communications platform relies on traditional software licenses that are not suitable for cloud computing and are not as good as products from the technology giant Alibaba.

Due to the difficulties of operating in the United States, the memo states: The company should consolidate its local location and establish its own land to exclude the United States.

She added: If American standards do not live up to our standards and we cannot enter the United States, then once we control Europe, Asia-Pacific and Africa, the United States will not be able to enter our country.

The memo confirmed an implicit trend from the company's previous announcement indicating postponement of phone calls.

Rotary Chairman Eric Shaw said in April that the company will invest more than $ 1 billion in the smart driving industry this year.

A source told Reuters earlier this month that Huawei had expanded its partnership with the state-owned Chongqing Changan Automobile Corporation to include the design and development of semiconductors for cars.

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