Huawei founder says company should dodge sanctions by pivoting to software
Huawei founder and CEO Ren Zhengfei has reportedly urged the Chinese tech giant’s staff to turn the company into a major software force as a way to alleviate the impact of devastating US sanctions. In an internal memo viewed by Reuters, Ren says that Huawei should focus on software because the industry is “outside of US control and we will have greater independence and autonomy.”
Huawei is presently unable to mass-produce much of its
hardware products because of sanctions forbidding US firms from doing business
with it. The company stockpiled chips and components in an attempt to mitigate
the sanctions, but the reserves are limited and in some cases will be swiftly
obsoleted. Huawei is also blocked from using Google apps and services on its
smartphones. The Biden administration hasn’t suggested that it will reverse any
of the Trump-era sanctions, although the US has eased off its moves against
other Chinese companies like Xiaomi and TikTok.
Because of this climate, Ren reportedly told employees that
Huawei is to focus on software including MindSpore, its cloud AI platform, and
its HarmonyOS operating system for various devices. The company is said to be
planning to compete in major markets other than the US. “Once we dominate
Europe, the Asia Pacific and Africa, if US standards don’t match ours, and we
can’t enter the US, then the US can’t enter our territory,” Ren wrote,
according to Reuters.
It may not be long before an important part of Huawei’s
software strategy is revealed. Today, the company sent out a promotional image
on WeChat teasing a major HarmonyOS-related announcement for June 2nd. The
operating system is yet to launch on smartphones, with the initial focus being
IoT devices and TVs upon its early release.
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