Huawei ushered in the “darkest moment”: survival is the key word

Last week, the U.S. Commerce Department announced an escalation of sanctions on Huawei to limit its ability to design and produce semiconductors abroad using U.S. technology and software. If the U.S. Department of Commerce’s direct product rule is implemented, most of Huawei’s products will need to face the control of the U.S. government, which will have a profound impact.

At the 17th Huawei Global Analyst Conference held on May 18, Guo Ping, Huawei’s rotating chairman, said that Huawei’s theme for the past year was “filling holes”, and this year’s theme is “alive”.

What has Huawei done that deserves the attention of the United States?

In his speech, Guo Ping mentioned that he has been unable to understand what the US government’s continued suppression of Huawei can bring to the world.

Huawei has always actively participated in the activities of industry standards organizations and made its own contributions to the development of standards. In the field of connectivity, Huawei resolutely maintains a unified global standard, supports further opening of the cloud and computing fields, and calls on international organizations to be more inclusive.

In the past 30 years, Huawei has taken digital technology out of the ivory tower and accelerated the global popularization of digital technology. It has deployed more than 1,500 networks in more than 170 countries and regions around the world, and provided smart terminal equipment for 600 million consumers. , serving more than 3 billion people worldwide. Up to now, Huawei has more than 85,000 authorized patents, but Huawei has not charged too much, let alone weaponized patents.

“Huawei has always been committed to building a diverse and prosperous industrial ecosystem. Based on the principles of expanding the industry, win-win business, and benefit-sharing, we have been working with our customers and partners to create new value for the industry and society. Developers, for example, we have continuously benefited more than 3 million developers through remote laboratories, technical training, innovation funds, etc. Our continuous contributions in industry organizations, industry collaboration, and business alliances have driven the entire The common prosperity of the industrial chain.” Guo Ping said.

Guo Ping also mentioned that Huawei has chosen some directions for key investment, such as close cooperation with universities and scientific research institutions, and medium and long-term exploration. Make incremental contributions to industrial development.

It is difficult to understand that from its creation to today, Huawei has been committed to allowing more people, families and organizations to benefit from digital technology and to promote the progress of the world together. But why is the United States keeping an eye on Huawei? I believe many people have the answer in their hearts.

The importance of unified standards and diversified supply strategies

According to Guo Ping, the separation of standards and industries will have a serious impact on the entire industry and society.

Guo Ping shared his observation strategy and call for standards for the industry: the unification of standards has far-reaching significance for industry development and value creation. Since the 2G era, the mainstream suppliers in the United States and the mainstream operators in the United States have adopted different standards respectively. The original leading American equipment manufacturers have to meet the different needs of different suppliers and operators, leading to decline. Therefore, a unified standard system is extremely important to the development of the industry.

What happened to Huawei this year has made many companies and even countries aware of the risks of a single supply system. More companies will adopt a globalized and diversified supply strategy like Huawei to ensure business continuity. And the United States has continuously attacked other countries’ leading technology companies. In the long run, it will also weaken the confidence of other countries to use American technology and intensify the conflicts in the global industry. In the end, it will also harm the interests of the United States itself.

What will Huawei do next?

Guo Ping said that although it has been suppressed by the United States many times, Huawei will never move towards isolation or isolationism, and Huawei’s strategy of globalization and diversification will not be shaken or changed.

It is reported that Huawei purchased US$18.7 billion from the United States last year. If the US government allows it, Huawei will continue to purchase products from American companies. Huawei will also care more about and cultivate other suppliers, grow together, innovate together, and build more competitiveness. supply chain. Today’s world has formed an integrated collaborative system, and this system will not be reversed nor can it be reversed. Standing at the entrance of the intelligent world, the opportunities of the ICT industry far outweigh the competition.

Guo Ping also said that ICT infrastructure is the cornerstone of an intelligent society. The integration of new technologies such as artificial intelligence, Internet of Things, and 5G into all aspects of human society will certainly promote the sustainable development of society and become a new driving force for economic growth. Improve our consumption experience and build a smart city to drive the digital transformation of the industry.

According to forecasts, the scale of the digital economy will reach 23 trillion US dollars by 2025. Huawei remains confident in the future of the ICT industry and faces the future. Huawei will continue to invest in connectivity, computing, and terminals. Through open cooperation in supply chain standards and talent, we will embrace development and work with our customers, our partners, and standards organizations to jointly promote the development of the entire industry. Make progress and explore the future together.

At the end of the speech, Guo Ping mentioned that “Huawei is like a plane with many holes. In the past year, agitation has been our main theme, and it has also made us rough. With the support of our customers and partners, we have Have the confidence to keep this plane flying, fly forward, and never give up.”

In the subsequent question-and-answer session, Huawei responded to media questions.

The following is the Q&A transcript of the “Huawei Analyst Conference 2020”:

1. Q: It is just one year since Huawei was added to the Entity List by the United States. In the past year, how has Huawei maintained its development? Facing the future, what are the main challenges?

Guo Ping, Rotating Chairman of Huawei: The past year has been a very difficult and challenging year for Huawei. I remember that on May 16 last year, when we were added to the US Entity List, we were in a hurry. We spent a lot of time communicating, clarifying and understanding with our customers, partners and Huawei employees.

Under the circumstance that technology acquisition is greatly restricted, we have increased investment in research and development. You can see in the data just now that our investment in research and development has increased by about 30%, many of which are used for so-called “aircraft filling holes”, including re-engineering. Designing more than 60 million lines of code, including the development of more than 1,800 new veneers, including the selection of new supply materials, it should be said that we have paid a lot of effort and cost. Fortunately, we have gained the trust and recognition of the vast majority of customers, partners, and Huawei employees.

In the process, we have also accumulated some experience, so in the face of long-term sanctions with uncertain rules, I believe we can work hard to find a solution.

2. Question: Regarding the current trend of technological development, there may be two technological hemispheres, one dominated by the United States and recognized by the United States, and the other hemisphere that does not depend on American technology to some extent. of this hemisphere. Will Huawei be able to get enough growth from this market for what I call the second hemisphere? And what will Huawei do and what changes will it make to get enough growth in this market?

Guo Ping: As I said just now, we have experience and lessons in the field of connectivity. It is the consensus of everyone (now) to pursue a unified standard. I think we may have had this experience before, traveling to different countries or intercontinental travel. Sometimes it is necessary to change to different mobile phones. Now, from the multi-standard of 2G and 3G, it has finally been unified to the new standard of 5G. I think this trend is still there, and international organizations have also played an active role in this process.

As I mentioned just now, in the 2G era, the multi-standard US operators made the US telecom equipment manufacturers no longer have a leading position in the competition, and finally declined, which means that there is no longer a Huawei competitor in the US. I think the United States has had such a lesson. In Europe, by promoting GSM and globalizing this standard, European operators and European manufacturers have obtained great benefits.

Past experience shows that manufacturers, operators, and final consumers can all benefit from the realization of unified standards. We believe that this is a trend that everyone agrees with. Corresponding international organizations should actively promote unified standards. Huawei will also actively participate in, support, and adhere to the basic principles of openness, fairness, and non-discrimination. The way of cooperation promotes the realization of global unified standards. Thanks!

3. Q: I would like to ask about Huawei’s development plans in Europe, especially in terms of ecosystem construction, including the ICT ecosystem and the HMS ecosystem.

Wang Tao, Executive Director of Huawei and Director of the Product Investment Review Committee: Huawei has been working in the European market for a long time, working closely with local customers and partners, jointly innovating, and jointly solving customer problems, helping European operators and government and enterprise customers to build open, leading, and reliable solutions. communications infrastructure and computing infrastructure. At the same time, together with our partners, we are committed to promoting the development of the digital economy in Europe.

In the field of ICT technology, we will continue to innovate together with partners in various fields such as 5G, AI, computing, and optical communications, focus on problem solving, and help European telecom operators and government and enterprise customers build a world-leading communications foundation facilities and computing infrastructure. In terms of ICT-related ecology, we will provide customers with an open computing platform and inclusive AI through continuous innovation to enable the construction of a smart world in Europe. We will work with partners to jointly develop a more leading , A more inclusive computing ecosystem.

Wang Yanmin, President of the Global Ecological Development Department of Huawei Consumer BG: Let me introduce our HMS ecological development in Europe. From May 16, 2019, we are not allowed to use Google’s GMS Core. In this case, we Forced to develop Huawei’s HMS ecosystem. In the past year, Huawei has increased its investment in the HMS ecosystem, especially in ecosystem-oriented developers, service platforms, and multiple technologies. As of last quarter, there are currently over 1.4 million developers on our HMS ecosystem, a 150% increase from the beginning of 2019, which is a huge improvement.

At the same time, we have also carried out all-round cooperation with local European partners. For example, we cooperate with European TOMTOM in the field of maps, in the field of search, we cooperate with QWANT in France, and in the field of news, we cooperate with local European companies such as NewsUk. All-round cooperation.

We believe that a new ecosystem must first meet more localized consumer needs, and at the same time give priority to recommending localized applications and service platforms, which is an important strategy for our ecosystem. At the same time, our ecosystem is more geared towards local developers in Europe. In the future, we will continue to provide developer service platforms and local innovation labs, so that more local European developers and partners can access this ecosystem as soon as possible to provide better and better experience. Ecological products and services.

4. Q: It can be seen that the US’s suppression of Huawei’s global business may not end in the short term, so what do you think about the current global health crisis such as the new crown epidemic, the US continues to do this to Huawei? pressure?

Guo Ping: Huawei has gone through the whole process of the epidemic in China. At the same time, we are also working hard with Huawei customers around the world to deal with the new crown epidemic and make positive efforts. From the experience of responding to the new crown epidemic, we can conclude that ICT infrastructure can play a very positive and very important role. Huawei and our partners have summarized nine ICT technologies to support the anti-epidemic solutions in China’s anti-epidemic process. As you all know, residential areas in China, especially in large cities such as Wuhan, are generally very crowded, and everyone should be isolated at home. Staying for more than 80 days is a very difficult thing. The solutions we developed in cooperation with the government and relevant industry partners have played a very positive role in helping fight the epidemic and helping consumers live and work normally.

At the same time, in Europe, Africa, and Asia, Huawei’s network security also plays an active role. For example, after China locked down the city, the government let these content providers provide free video services for 3 months. Shortly after the UK began social isolation, there were widespread network outages, and the European Union required Netflix to switch from high-definition playback to standard-definition standards. Why can China hold on, and other regions need to reduce some (network) services? In the final analysis, it is because of the complete ICT infrastructure that the fight against the epidemic, including telemedicine, distance education, and telework, has played a very positive role.

Huawei has always been an active contributor to the ICT field, and frankly, I think there is absolutely no reason why the US government keeps hitting us. I have also been reading some speeches and speeches by senior US officials recently, and I can try to sum up one point: the US believes that technological leadership is the basis of US hegemony, and the technological leadership of any other country or company may damage US hegemony. Unfortunately, Huawei has achieved a (technical) lead in the fastest growing ICT sector. I have also noticed that your President has also made many speeches mentioning the need to strengthen the EU’s infrastructure and digital sovereignty.

5. Q: I saw that in the ranking of guest speeches at this analyst conference, several leaders of HUAWEI CLOUD are ranked relatively high. This year, Huawei has also adjusted the cloud business structure and mentioned the BG level. I would like to ask how high HUAWEI CLOUD’s expectations are for HUAWEI CLOUD under the background of sanctions? In this situation, what are the biggest challenges of HUAWEI CLOUD?

Wang Tao: We all know that the next ten years will be a golden decade for us to carry out digital transformation and intelligent transformation. In order to enable our digital transformation or intelligent transformation, HUAWEI CLOUD plays an extremely critical role. HUAWEI CLOUD has been committed to For enabling applications, enabling data, and building the dark land of an intelligent world. As we all know, Huawei is a leading supplier of ICT solutions and smart terminals. In the process of building an enabling smart society, we mainly rely on smart terminals + connection + computing + cloud to jointly build a solution.

As an open and powerful computing and enabling platform, HUAWEI CLOUD will enable Huawei’s ICT solutions, industry developers and government and enterprise customers to jointly create a comprehensive solution that can solve various complex problems. Huawei will build our differentiated HUAWEI CLOUD solutions that can create greater value for customers in three aspects:

First of all, Huawei will fully integrate the ICT technology and cloud that we have cultivated for 30 years, and jointly connect the end, edge, pipe, and cloud to build an end-to-end solution. Second, Huawei will use our own digital experience to form solutions based on the cloud to better serve our government and enterprise customers. Third, Huawei will adhere to the concept of co-creation, win-win, and openness, and work with our partners to build an open cloud and a leading cloud. For example, in the past year, we have developed together with HUAWEI CLOUD consulting partners, and more than 10,000 HUAWEI CLOUD partners have worked with us to create leading solutions.

At the same time, Huawei actively contributes to the open source community. For example, in the cloud-native computing foundation CNCF, Huawei launched the first intelligent edge project KubeEdge last year, and we also launched the first container batch computing project Volcano, which accelerated cloud computing. The penetration of the original technology into the industry promotes the innovation of the industry. We believe that through continuous innovation, HUAWEI CLOUD will make greater contributions to customers and enable the construction of an intelligent world.

6. Q: May I ask Mr. Guo, we know that even though Huawei has been suppressed by the US government for a year, Huawei’s performance is still good. I would like to ask about Huawei’s revenue this year. What kind of expectations are there now? In addition to the CBG business, we know that high-end mobile phone chips may have problems in the future. I would like to ask the guests on stage, will Huawei’s entire mobile phone shipments have some adjustments this year?

Guo Ping: Last year, the United States put Huawei on the Entity List, which had a great impact on Huawei’s business. In fact, we did not realize our business plan last year. Compared with our business plan at the beginning of the year, it was about 12 billion US dollars short. You’re seeing a dip in growth every quarter as well, and you can see the impact on that. In particular, every contract that Huawei has won, it should be said that there are more difficulties than before. I am very grateful to so many customers for their trust and support to Huawei.

Regarding the revision of the direct product rules two days ago, many situations are still unclear, and we are still making further evaluations. As an ICT equipment and terminal company, Huawei can (do a good job in) product design (even) integrated circuit design, but we do not have many capabilities beyond this, so we actually have to do our best to find solution.

Survival is Huawei’s current theme.

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