Ren Zhengfei responded to the 5G technology licensing decision: Huawei will decline if its rival is not strong

 Ren Zhengfei responded to the 5G technology licensing decision: Huawei will decline if its rival is not strong

1. CEOAlan Murray: Thank you very much for taking the time to communicate with us today. My main problem is related to your picture of a rotten plane. Does this map reflect a short-term twist in the process of economic globalization, or does it mean that we are moving towards some form of decoupling, which will have a significant impact on the way global economic technology operates?

Ren Zhengfei: This photo does not really have that deep meaning. It just feels that we were hurt in many places in the process of meeting the ban on the list of entities in the United States. If these holes are not repaired, the aircraft may not be able to land safely. But we always firmly support globalization. We will never just focus on filling in the aircraft and forget that we must continue to move forward on the road of globalization. We are still waiting for approval from the U.S. Department of Commerce, and the U.S. manufacturers will resume supply to us.

2. Alan Murray: What about another situation? If Huawei stays on the list of entities, then American companies cant sell to Huawei. In the short run, this will obviously cause damage to Huawei. What impact will Huawei have in the long run, say, five or ten years?

Ren Zhengfei: In the short run, it wont have much impact. From 5G to core network industry, which is the most worrying thing in the United States, we dont need American spare parts at all. Only the ecosystem of end products will have an impact, but we believe that the impact will be completely eliminated in about two or three years.

Alan Murray: Eliminate the impact by building Huaweis ecosystem?

Ren Zhengfei: Right.

Ren Zhengfei: From the long-term development of the company, it may be a good thing. But Huaweis scale is growing larger and larger, and its fate is becoming less and less in its own hands. We firmly support globalization, but how can we survive? So its better that we can build our own ecological survival, while not excluding the use of other peoples ecology, support othersecology. We have an agreement with the company concerned, but we still have to stick to it if conditions permit.

Globalization was proposed by the United States, but the United States is breaking the rules of globalization. I have always been pro-American, and have been fighting against the emotional impulse within our company. Recently, I have sent another article to support the process IT Department of internal service to build a Great Wall with American brick, European brick and Japanese brick, and try every possible way to prevent the impulse of internal staff to innovate independently in IT service and create their own internal management IT platform. This is not only costly, but also cumbersome.

3. Alan Murray: Two days ago, you made a very unusual suggestion that Huawei was willing to license its technology to American companies. As far as I understand it, Huawei has never done this in its history. Huawei is trying to alleviate security concerns. Have you been contacted by an American company since your olive branch was thrown out? Do you think there will be any American companies to contact you in the future?

Ren Zhengfei: First of all, why do we do this? We believe that the world has established a balanced technological ecosystem by the United States, Europe, China, Japan and Korea. Of course, this is a technical ecosystem, unlike Googles ecosystem. Because the era of artificial intelligence is coming soon, the construction of optical fiber to the home in the United States is lagging behind. If 5G network is lagging behind, American artificial intelligence may lose its leading edge.

First, we are willing to follow the international practice of FRAND principle and license 5G patents to American companies in a fair and non-discriminatory manner.

Second, 5G proprietary technology, including a complete 5G network technology (software source code, hardware design, manufacturing technology, network optimization, testing and other overall solutions), completely and unreservedly exclusively licenses American companies, so that the United States, Europe, and Chinese companies start at the same time, continue to compete in new technologies;

Third, the United States can choose the 5G base station with the U.S. general chip as the main body, or the U.S. general chip + Huawei chip mode. If we need our 5G chip technology, we can also transfer the license.

This is good for Huawei. On the one hand, it eases international relations, on the other hand, it increases competitors. If the competitors are not strong, Huawei will also decline. From this perspective, we are fully open. We believe that in the future, the market of information society will be very broad, and there will be more room for many large companies and tens of millions of small companies to serve and compete. When our company dominates the world in many fields, it may not be far from death.

Ren Zhengfei: history has always been like this. A dynasty tends to rise and fall, because many countries have to besiege it. Another example is Phillips of the United States, who won several world championships, but later failed to win, because the whole world is aiming at how to defeat his swimming style and how can he maintain it? In fact, before Trump hit us, our company was close to this situation.

Alan Murray: So Trump helped Huawei?

Ren Zhengfei: Yes, he is the force behind our reform. First, because Huawei is advanced in technology, contracts are easy to get, the national representative office in front of it does not need much effort to solve the problem easily. After getting the contract, it will be very idle and corrupt, and the company will falter. Second, our organs are getting bigger and bigger, the office environment is getting better and better, knocking on the keyboard and exporting several processes will get the money, who will be willing to go to hardship. What about regional and national work? Dusseldorfs income did not increase much, but it was several times larger than that of the regional authorities. When Trump attacked us, we really felt the threat of survival. If we did not work hard, we would leave. So would senior cadres. If we did not work hard, we would withdraw. You see, we have been rejuvenated this year and everyone is working very hard.

4. Alan Murray: Back to Huawei to provide technology licensing, have you discussed this with some American companies?

Ren Zhengfei: Such a major issue, will not be so simple and there will be consensus, will not be in such a hurry. There are a lot of elites in the United States who are asking how it works.

Alan Murray: When you put forward this proposal, I guess you have a candidate company in mind. Which company will it be?

Ren Zhengfei: Firstly, the company should be very big. If it purchases the license of this technology, it can not form a large market space. It is not cost-effective for it.

Second, we dont have a market division. Its not only sold in the U.S. market. It can be sold anywhere except Mars, the moon and the sun, including China. There is ample competition between us.

Thirdly, the company should have some accumulation of communication technology base, which is close to Huawei industry. It can modify the source program and source code on the basis of the technical scheme provided by us, so that it can be completely independent of the original system provided by us, and Huawei can not understand the technology it uses in the future, so as to solve the national security concerns of the United States. Before it completes the technical modification, we will tell Huaweis technological progress transparently to ensure that it keeps pace with Huaweis progress. When it modifies the technology, we have no idea what technology it uses. Since then, we have continued for another decade, telling it unilaterally about our improved thinking.

We sincerely want to do this technology licensing, we will not leave behind and secrets. We are not foolish to be open and transparent to licensees, but to make Huaweis 190,000 employees face a strong competitor and no one dares to sleep in.

Alan Murray: Your proposal is unprecedented. Ive been doing business reporting for 40 years, but I never thought anyone would come up with such an idea. Some people think this idea is crazy, so turn around and question your sincerity in doing it.

Ren Zhengfei: Now, the whip that urges Huawei to make progress is in my hands. In the future, I will transfer this whip to American companies. American companies have made progress to become powerful competitors, forcing us to make tremendous efforts to advance.

Clay Chandler, Asia Executive Editor of Fortune magazine: Just now, when you asked Huawei to license 5G technology, did you have any specific company in mind, you gave some conditions. Which companies can meet these requirements? Can you name a few companies or people that you think deserve to be Huaweis partners?

Ren Zhengfei: I cant name any companies. I think its an offence. But I believe there must be such ambitious companies in the United States that want to dominate the world. Its not my responsibility for the media to speculate.

Alan Murray: if an American company is interested in this extremely rare deal proposal, who should they call?

Ren Zhengfei: Anyone who dials Huawei can transfer the call to the companys highest headquarters, contact the Public Relations Department or my mailbox.

Alan Murray: Can we put your email address in our published articles?

Ren Zhengfei: No problem.

Alan Murray: Okay, Ill put it in and see what happens.

Ren Zhengfei: I support it.

Source of this article: Observer Network Responsible Editor: Sun Yuno_NBJS9209