How Tech Giant Huawei Plans to Deal with U.S. Sanctions

How Tech Giant Huawei Plans to Deal with U.S. Sanctions

Founder of Huawei Technologies Ren Zhengfei used an internal memo to highlight one very important topic. He called on the company’s employees to pay more attention to software as the company seeks growth beyond hardware operations. The internal memo is the best evidence yet of the company’s direction as it responds to the huge pressure created by U.S. sanctions. The company is focusing on software because it plays an important role in the modern world. Huawei also wants to reduce its dependence on the U.S.

In 2019, U.S. President Donald Trump put Huawei on an export blacklist and barred it from accessing U.S.-origin technology. Current U.S. President Joe Biden’s administration is unlikely to reverse Trump’s sanctions.

Ren Zhengfei admitted that it won’t be easy for Huawei to produce hardware in the short term. Despite all challenges, it should focus on building software ecosystems, such as its HarmonyOS operating system. The company also should focus on its cloud AI system Mindspore and other IT products according to the note.

 

Huawei and its ambitious plans

 

Ren Zhengfei’s note also contained other interesting details. Ren’s note also said the software push would rely on finding the right business model. Huawei should adopt an open-source approach. He also said the company’s Welink business communication platform relied on traditional software licensing, which was inferior to a rival product from Alibaba.

The founder of Huawei Technologies also said the company should strengthen its position in China. His note confirms a direction suggested by previous announcements from the tech giant that hinted at a shift away from handset hardware. Rotating chairman Eric Xu said the company would invest more than $1 billion in 2021 in its intelligent driving business.

Huawei is also expanding its smart car partnership with state-owned Chongqing Changan Automobile. Together with Chongqing Changan Automobile, Huawei plans to work on the design and development of auto-use semiconductors.

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