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Tag: Ren Zhengfei

  • Huawei Founder Wants Company to Pivot to Software Amid Sanctions

    Huawei Founder Wants Company to Pivot to Software Amid Sanctions

    Huawei founder Ren Zhengfei is calling on the company to pivot to software as sanctions against its hardware business have crippled it.

    Huawei was one of the leading 5G network equipment providers in the world, in addition to being one of the top smartphone manufacturers. Concerns over its ties to Beijing, however, have led countries around the world to ban the company from participating in their 5G networks.

    To make matters worse, the US led a successful effort to cut the company off from semiconductor manufacturing resources, effectively crippling its smartphone business. As a result, Huawei sold its Honor brand of smartphones, and warned that shipments of its flagship line would be significantly lower going forward.

    Zhengfei believes the company’s path forward lies with software, according to a memo seen by Reuters, with him calling on the company to “dare to lead the world” in software. Zhengfei specifically highlighted his belief that the future of software development was “outside of U.S. control and we will have greater independence and autonomy.”

    It’s a safe bet many countries and jurisdictions will be equally concerned about software provided by Huawei, but the lower cost involved in software vs hardware will still be a major benefit for the company.

  • Huawei Still Open to Licensing Tech to American Company

    Huawei Still Open to Licensing Tech to American Company

    As the U.S. and Huawei continue battling over worldwide 5G dominance, Huawei has reiterated its willingness to license its tech to an American company.

    The U.S. has banned Huawei and engaged in an aggressive campaign to pressure its allies around the world to do the same. So far, the campaign has met with limited results, as even the UK has opted to include Huawei in a limited role in its 5G network.

    Further exacerbating the issue is the perceived advantages Huawei has, both in its technology and its ability to scale to the needs and demands of wireless carriers. Many carriers believe its lead is nearly insurmountable, causing them to conclude they have no choice but to use Huawei’s equipment, or risk spending years and untold amount of money working with alternatives. The situation even resulted in U.S. Attorney General William Barr floating the idea of the U.S. investing in Nokia and Ericsson, to help bolster and empower them to better compete and overcome Huawei’s advantage.

    According to CNBC, founder and CEO Ren Zhengfei previously offered to license Huawei tech exclusively to an American company to help the U.S. better compete with the Chinese firm. Although there have been no takers on the offer, CNBC reports the company says it is still “on the table.”

    It’s unclear whether such an offer would placate U.S. concerns. On the one hand, Huawei has offered to license its “proprietary 5G tech including source code, hardware, software, verification, production, and manufacturing know-how.” Proponents of the move could argue that it would be extremely difficult, if not impossible, for there to be any lingering backdoors or security concerns. On the other hand, U.S. officials would likely object to any kind of deal that continues to put money in Huawei’s coffers and, even indirectly, contribute to its continued global dominance.

     

    Image Credit: Huawei

  • Huawei Moves Research to Canada, Urges Suppliers to Break U.S. Law

    Huawei Moves Research to Canada, Urges Suppliers to Break U.S. Law

    The battle between Huawei and the U.S. shows no signs of abating. In fact, Huawei is making moves that will likely ratchet up the war even further.

    Huawei’s CEO, Ren Zhengfei, told the Toronto Globe and Mail in a video interview that Huawei is moving its research facilities from the U.S. to Canada. Zhengfei acknowledged the company does not have much of a presence in the U.S., but does not want to give up on any one country due to a dispute.

    Zhengfei said in the interview that the relocation to Canada would be a gradual one, but was necessary as a result of the sanctions.

    “Because of the sanctions, we are not allowed to communicate with our employees in America. No phone calls. No e-mails. No contacts. Huawei’s development has been blocked in America, and therefore we are moving our business to Canada.”

    Meanwhile, Reuters is reporting that the company has been encouraging suppliers to break the law to work around U.S. sanctions against Huawei.

    Commerce Department Secretary Wilbur Ross told Reuters the U.S. government is frustrated by the limitations of blacklisting, since it does nothing to prevent overseas suppliers from selling to Huawei.

    Ross said Huawei has “been openly advocating companies to move their production offshore to get around the fact that we put Huawei on the list. Anybody who does move the product out specifically to avoid the sanction… that’s a violation of U.S. law. So here you have Huawei encouraging American suppliers to violate the law.”

    It’s safe to say the U.S. will likely be looking at additional options to punish Huawei.